Korea Electric Power (NYSE:KEP) vs. National Grid Transco (NYSE:NGG) Critical Analysis

National Grid Transco (NYSE:NGG) and Korea Electric Power (NYSE:KEP) are both large-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional & Insider Ownership

4.7% of National Grid Transco shares are owned by institutional investors. 1.0% of Korea Electric Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares National Grid Transco and Korea Electric Power”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Grid Transco	$23.61 billion	3.18	$3.70 billion	N/A	N/A
Korea Electric Power	$68.46 billion	0.32	$2.44 billion	$3.51	4.85

National Grid Transco has higher earnings, but lower revenue than Korea Electric Power.

Risk and Volatility

National Grid Transco has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Korea Electric Power has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Dividends

National Grid Transco pays an annual dividend of $2.11 per share and has a dividend yield of 2.8%. Korea Electric Power pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Korea Electric Power pays out 1.4% of its earnings in the form of a dividend.

Profitability

This table compares National Grid Transco and Korea Electric Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Grid Transco	N/A	N/A	N/A
Korea Electric Power	6.58%	15.34%	2.60%

Analyst Recommendations

This is a breakdown of current ratings for National Grid Transco and Korea Electric Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Grid Transco	2	5	4	0	2.18
Korea Electric Power	0	1	1	0	2.50

National Grid Transco presently has a consensus target price of $83.80, indicating a potential upside of 10.79%. Given National Grid Transco’s higher probable upside, equities research analysts plainly believe National Grid Transco is more favorable than Korea Electric Power.

About National Grid Transco

National Grid plc transmits and distributes electricity and gas. It operates through UK Electricity Transmission, UK Electricity Distribution, UK Electricity System Operator, New England, New York, National Grid Ventures, and Other segments. The UK Electricity Transmission segment provides electricity transmission and construction work services in England and Wales. The UK Electricity Distribution segment offers electricity distribution services in Midlands, and South West of England and South Wales. The UK Electricity System Operator segment provides balancing services for supply and demand of electricity on Great Britain’s electricity transmission system; and acts as an agent on behalf of transmission operators. The New England segment offers electricity and gas distribution, and electricity transmission services in New England. The New York segment provides electricity and gas distribution, and electricity transmission services in New York. The National Grid Ventures segment provides transmission services through electricity interconnectors and LNG importation at the Isle of Grain, as well as sale of renewables projects. The Other segment engages in the leasing and sale of commercial property, as well as insurance activities in the United Kingdom. The company was founded in 1990 and is headquartered in London, the United Kingdom.

About Korea Electric Power

Korea Electric Power Corporation, an integrated electric utility company, engages in the generation, transmission, and distribution of electricity in South Korea and internationally. The company operates through Transmission and Distribution, Nuclear Power Generation, Thermal Power Generation, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, combined-cycle, integrated gasification combined cycle, hydro, wind, solar, fuel cell, biogas, and other sources. As of December 31, 2022, the company had a total of 770 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 82,723 megawatts; transmission system consisted of 35,451 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 895 substations with an installed transformer capacity of 347,426 megavolt-amperes; and distribution system included 139,265 megavolt-amperes of transformer capacity and 10,084,051 units of support with a total line length of 535,241 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It also provides engineering and construction services for utility plant and others; utility plant maintenance, electric power information technology, resources development, facility maintenance, electric meter reading, and security services; and engages in nuclear fuel, fly ashes recycling, utility plants construction and operation, and wood pellet utilization businesses. Korea Electric Power Corporation was founded in 1898 and is headquartered in Naju-si, South Korea.