Reviewing Summit Midstream (NYSE:SMC) and National Grid (NYSE:NGG)

Summit Midstream (NYSE:SMC) and National Grid (NYSE:NGG) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Summit Midstream and National Grid, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Midstream	0	0	0	0	0.00
National Grid	0	2	3	0	2.60

Insider & Institutional Ownership

43.0% of Summit Midstream shares are owned by institutional investors. Comparatively, 4.7% of National Grid shares are owned by institutional investors. 37.8% of Summit Midstream shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Summit Midstream and National Grid’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Midstream	-23.01%	0.71%	0.22%
National Grid	N/A	N/A	N/A

Volatility & Risk

Summit Midstream has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, National Grid has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Summit Midstream and National Grid”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Midstream	$429.62 million	1.23	-$38.95 million	($13.09)	-2.17
National Grid	$19.32 billion	3.58	$2.88 billion	$5.20	13.59

National Grid has higher revenue and earnings than Summit Midstream. Summit Midstream is trading at a lower price-to-earnings ratio than National Grid, indicating that it is currently the more affordable of the two stocks.

Summary

National Grid beats Summit Midstream on 8 of the 13 factors compared between the two stocks.

About Summit Midstream

Summit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations. It serves natural gas and crude oil producers. Summit Midstream Corporation was founded in 2012 and is based in Houston, Texas.

About National Grid

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.