NGG vs SO

For growth investors, The Southern Company (SO) is the stronger pick with 10.

6% revenue growth year-over-year, versus -7. 4% for National Grid plc (NGG). National Grid plc (NGG) offers the better valuation at 22. 0x trailing P/E (22. 0x 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.

On trailing P/E, National Grid plc (NGG) is the cheapest at 22.

0x versus The Southern Company at 24. 5x. On forward P/E, The Southern Company is actually cheaper at 21. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: National Grid plc wins at 2. 12x versus The Southern Company's 3. 58x.

Over the past 5 years, National Grid plc (NGG) delivered a total return of +69.

9%, compared to +67. 9% for The Southern Company (SO). Over 10 years, the gap is even starker: SO returned +140. 8% versus NGG's +63. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Southern Company (SO) is the lower-risk stock at -0.

15β versus National Grid plc's 0. 08β — meaning NGG is approximately -153% more volatile than SO relative to the S&P 500. On balance sheet safety, National Grid plc (NGG) carries a lower debt/equity ratio of 126% versus 169% for The Southern Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Southern Company (SO) is pulling ahead at 10.

6% versus -7. 4% for National Grid plc (NGG). On earnings-per-share growth, the picture is similar: National Grid plc grew EPS 7. 3% year-over-year, compared to -1. 8% for The Southern Company. Over a 3-year CAGR, SO leads at 0. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

National Grid plc (NGG) is the more profitable company, earning 15.

8% net margin versus 14. 7% for The Southern Company — meaning it keeps 15. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NGG leads at 26. 8% versus 24. 6% for SO. 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.

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. 12x versus The Southern Company's 3. 58x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, The Southern Company (SO) trades at 21. 0x forward P/E versus 22. 0x for National Grid plc — 1. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SO: 3. 9% to $99. 62.

All stocks in this comparison pay dividends.

The Southern Company (SO) offers the highest yield at 2. 8%, versus 2. 4% for National Grid plc (NGG).

For long-horizon retirement investors, The Southern Company (SO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

15), 2. 8% yield, +140. 8% 10Y return). Both have compounded well over 10 years (SO: +140. 8%, NGG: +63. 9%), 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.

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.