Comprehensive Stock Comparison
Compare Fortis Inc. (FTS) vs National Grid plc (NGG) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | FTS | 5.8% revenue growth vs NGG's -7.4% |
| Value | FTS | Lower P/E (15.9x vs 23.1x) |
| Quality / Margins | FTS | 14.8% net margin vs NGG's 12.7% |
| Stability / Safety | NGG | Lower D/E ratio (125.7% vs 133.9%) |
| Dividends | NGG | 2.2% yield, vs FTS's 2.1% |
| Momentum (1Y) | NGG | +55.9% vs FTS's +35.2% |
| Efficiency (ROA) | NGG | 4.5% ROA vs FTS's 2.2%, ROIC 4.6% vs 4.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Fortis Inc. is a North American regulated electric and gas utility that generates, transmits, and distributes electricity and natural gas to millions of customers across Canada, the United States, and the Caribbean. It earns stable, regulated returns primarily from rate-regulated utility operations — with electricity distribution contributing roughly 60% of revenue and gas distribution about 30% — supplemented by contracted wholesale power sales. The company's key advantage is its geographically diversified portfolio of essential utility assets operating under predictable regulatory frameworks that provide stable cash flows and inflation-protected returns.
National Grid is a regulated utility that operates electricity and gas transmission and distribution networks in the UK and northeastern United States. It earns revenue through regulated asset returns — collecting fees from customers for using its infrastructure — with its UK transmission business contributing roughly 40% of operating profit and its US operations about 35%. The company's primary moat comes from its natural monopoly position as an owner of critical energy infrastructure, protected by high regulatory barriers to entry and long-term, stable rate-of-return frameworks.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
FTS leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). NGG leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Financial Metrics (TTM)
NGG is the larger business by revenue, generating $36.8B annually — 3.2x FTS's $11.3B. Profitability is closely matched — net margins range from 14.8% (FTS) to 12.7% (NGG). On growth, FTS holds the edge at +4.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | FTSFortis Inc. | NGGNational Grid plc |
|---|---|---|
| RevenueTrailing 12 months | $11.3B | $36.8B |
| EBITDAEarnings before interest/tax | $5.2B | $12.5B |
| Net IncomeAfter-tax profit | $1.7B | $4.7B |
| Free Cash FlowCash after capex | -$2.0B | -$4.8B |
| Gross MarginGross profit ÷ Revenue | +56.5% | +100.0% |
| Operating MarginEBIT ÷ Revenue | +28.6% | +24.3% |
| Net MarginNet income ÷ Revenue | +14.8% | +12.7% |
| FCF MarginFCF ÷ Revenue | -17.7% | -13.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.4% | -11.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.8% | -7.1% |
Valuation Metrics
At 23.1x trailing earnings, FTS trades at a 2% valuation discount to NGG's 23.6x P/E. Adjusting for growth (PEG ratio), NGG offers better value at 2.28x vs FTS's 4.60x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | FTSFortis Inc. | NGGNational Grid plc |
|---|---|---|
| Market CapShares × price | $29.2B | $93.2B |
| Enterprise ValueMkt cap + debt − cash | $54.2B | $155.6B |
| Trailing P/EPrice ÷ TTM EPS | 23.14x | 23.63x |
| Forward P/EPrice ÷ next-FY EPS est. | 15.87x | 23.15x |
| PEG RatioP/E ÷ EPS growth rate | 4.60x | 2.28x |
| EV / EBITDAEnterprise value multiple | 13.37x | 16.27x |
| Price / SalesMarket cap ÷ Revenue | 3.28x | 3.77x |
| Price / BookPrice ÷ Book value/share | 1.61x | 1.81x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
NGG delivers a 12.6% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $6 for FTS. NGG carries lower financial leverage with a 1.26x debt-to-equity ratio, signaling a more conservative balance sheet compared to FTS's 1.34x. On the Piotroski fundamental quality scale (0–9), NGG scores 7/9 vs FTS's 5/9, reflecting strong financial health.
| Metric | FTSFortis Inc. | NGGNational Grid plc |
|---|---|---|
| ROE (TTM)Return on equity | +6.5% | +12.6% |
| ROA (TTM)Return on assets | +2.2% | +4.5% |
| ROICReturn on invested capital | +4.4% | +4.6% |
| ROCEReturn on capital employed | +5.2% | +5.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 1.34x | 1.26x |
| Net DebtTotal debt minus cash | $34.3B | $46.4B |
| Cash & Equiv.Liquid assets | $367M | $1.2B |
| Total DebtShort + long-term debt | $34.6B | $47.5B |
| Interest CoverageEBIT ÷ Interest expense | — | 2.73x |
Total Returns (with DRIP)
A $10,000 investment in NGG five years ago would be worth $19,895 today (with dividends reinvested), compared to $16,825 for FTS. Over the past 12 months, NGG leads with a +55.9% total return vs FTS's +35.2%. The 3-year compound annual growth rate (CAGR) favors NGG at 19.5% vs FTS's 16.6% — a key indicator of consistent wealth creation.
| Metric | FTSFortis Inc. | NGGNational Grid plc |
|---|---|---|
| YTD ReturnYear-to-date | +11.7% | +19.1% |
| 1-Year ReturnPast 12 months | +35.2% | +55.9% |
| 3-Year ReturnCumulative with dividends | +58.6% | +70.6% |
| 5-Year ReturnCumulative with dividends | +68.3% | +98.9% |
| 10-Year ReturnCumulative with dividends | +160.9% | +84.4% |
| CAGR (3Y)Annualised 3-year return | +16.6% | +19.5% |
Risk & Volatility
FTS is the less volatile stock with a -0.10 beta — it tends to amplify market swings less than NGG's 0.04 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | FTSFortis Inc. | NGGNational Grid plc |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.10x | 0.04x |
| 52-Week HighHighest price in past year | $57.93 | $94.64 |
| 52-Week LowLowest price in past year | $43.19 | $59.35 |
| % of 52W HighCurrent price vs 52-week peak | +99.3% | +99.1% |
| RSI (14)Momentum oscillator 0–100 | 67.0 | 75.2 |
| Avg Volume (50D)Average daily shares traded | 863K | 695K |
Analyst Outlook
Wall Street rates FTS as "Hold" and NGG as "Buy". Consensus price targets imply -8.8% upside for NGG (target: $86) vs -11.5% for FTS (target: $51). For income investors, NGG offers the higher dividend yield at 2.23% vs FTS's 2.10%.
| Metric | FTSFortis Inc. | NGGNational Grid plc |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $50.86 | $85.50 |
| # AnalystsCovering analysts | 12 | 20 |
| Dividend YieldAnnual dividend ÷ price | +2.1% | +2.2% |
| Dividend StreakConsecutive years of raises | 4 | 0 |
| Dividend / ShareAnnual DPS | $1.65 | $1.56 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Fortis Inc. (FTS) | 100 | 124.61 | +24.6% |
| National Grid plc (NGG) | 100 | 130.71 | +30.7% |
National Grid plc (NGG) returned +99% over 5 years vs Fortis Inc. (FTS)'s +68%. A $10,000 investment in NGG 5 years ago would be worth $19,895 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Fortis Inc. (FTS) | $6.8B | $12.2B | +78.0% |
| National Grid plc (NGG) | $13.2B | $18.4B | +39.1% |
Fortis Inc.'s revenue grew from $6.8B (2016) to $12.2B (2025) — a 6.6% CAGR. National Grid plc's revenue grew from $13.2B (2016) to $18.4B (2025) — a 3.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Fortis Inc. (FTS) | 9.7% | 14.8% | +53.2% |
| National Grid plc (NGG) | 14.4% | 15.8% | +9.9% |
Fortis Inc.'s net margin went from 10% (2016) to 15% (2025). National Grid plc's net margin went from 14% (2016) to 16% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Fortis Inc. (FTS) | 15.9 | 15.3 | -3.8% |
| National Grid plc (NGG) | 5.2 | 26.2 | +403.8% |
Fortis Inc. has traded in a 11x–19x P/E range over 9 years; current trailing P/E is ~23x. National Grid plc has traded in a 5x–33x P/E range over 9 years; current trailing P/E is ~24x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Fortis Inc. (FTS) | 1.89 | 3.4 | +79.9% |
| National Grid plc (NGG) | 3.75 | 2.95 | -21.3% |
Fortis Inc.'s EPS grew from $1.89 (2016) to $3.40 (2025) — a 7% CAGR. National Grid plc's EPS grew from $3.75 (2016) to $2.95 (2025) — a -3% CAGR.
Chart 6Free Cash Flow — 5 Years
Fortis Inc. generated $-2B FCF in 2025 (-292% vs 2021). National Grid plc generated $-2B FCF in 2025 (-211% vs 2021).
FTS vs NGG: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FTS or NGG a better buy right now?
Fortis Inc. (FTS) offers the better valuation at 23.1x trailing P/E (15.9x forward), making it the more compelling value choice. Analysts rate National Grid plc (NGG) a "Buy" — based on 20 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — FTS or NGG?
On trailing P/E, Fortis Inc. (FTS) is the cheapest at 23.1x versus National Grid plc at 23.6x. On forward P/E, Fortis Inc. is actually cheaper at 15.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: National Grid plc wins at 2.23x versus Fortis Inc.'s 3.15x.
03Which is the better long-term investment — FTS or NGG?
Over the past 5 years, National Grid plc (NGG) delivered a total return of +98.9%, compared to +68.3% for Fortis Inc. (FTS). A $10,000 investment in NGG five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: FTS returned +160.9% versus NGG's +84.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — FTS or NGG?
By beta (market sensitivity over 5 years), Fortis Inc. (FTS) is the lower-risk stock at -0.10β versus National Grid plc's 0.04β — meaning NGG is approximately -142% more volatile than FTS relative to the S&P 500. On balance sheet safety, National Grid plc (NGG) carries a lower debt/equity ratio of 126% versus 134% for Fortis Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — FTS or NGG?
National Grid plc (NGG) is the more profitable company, earning 15.8% net margin versus 14.8% for Fortis Inc. — meaning it keeps 15.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FTS leads at 28.7% versus 26.8% for NGG. At the gross margin level — before operating expenses — NGG leads at 77.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is FTS or NGG more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, National Grid plc (NGG) is the more undervalued stock at a PEG of 2.23x versus Fortis Inc.'s 3.15x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Fortis Inc. (FTS) trades at 15.9x forward P/E versus 23.1x for National Grid plc — 7.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NGG: -8.8% to $85.50.
07Which pays a better dividend — FTS or NGG?
All stocks in this comparison pay dividends. National Grid plc (NGG) offers the highest yield at 2.2%, versus 2.1% for Fortis Inc. (FTS).
08Is FTS or NGG better for a retirement portfolio?
For long-horizon retirement investors, Fortis Inc. (FTS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.10), 2.1% yield, +160.9% 10Y return). Both have compounded well over 10 years (FTS: +160.9%, NGG: +84.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between FTS and NGG?
Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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