National Grid vs SSE, side by side
These are the defensive, income-paying end of the UK market. National Grid mainly owns and operates the regulated electricity and gas networks - the pylons and pipes - earning returns set by the regulator, which makes its income unusually predictable. SSE also owns networks but adds a big renewable-generation business (wind and hydro), so more of its fortunes ride on power prices and building new capacity.
On our factor screen it looks strongest on quality and income, and weakest on momentum.
On our factor screen it looks strongest on quality and income, and weakest on momentum.
The numbers, side by side
| Measure |  National Grid |  SSE |
|---|---|---|
| Price | £11.90 | £23.46 |
| Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'. | £59.82B | £28.30B |
| P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 18.0 | 22.3 |
| Div yield: Dividend yield: the yearly dividend as a percentage of the share price - roughly the income you'd earn just from dividends. | 4.1% | 2.9% |
| Revenue growth | 2.0% | -2.1% |
| 1Y: How much the share price has moved over the past year. | +10% | +27% |
More measures
| Forward P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 12.3 | 11.2 |
|---|---|---|
| Net margin | 18.3% | 11.9% |
| ROE | 8.4% | 9.7% |
| Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. | 0.60 | 0.59 |
The bolder figure is simply the larger of the two - higher is not automatically good (a higher P/E means more expectation in the price; a higher beta means bigger swings).
How they differ
National Grid is roughly 2.1x the size of SSE by market value. On our factor screen National Grid currently screens higher on quality, while SSE screens higher on momentum. SSE trades on the higher P/E (22.3 vs 18.0), so more expectation is already built into its price; and National Grid currently yields more (4.1% vs 2.9%). Over the past year the share prices moved +10% (National Grid) vs +27% (SSE).
Descriptive only - how the two compare on today's data, never a verdict on either.
National Grid, in one line
National Grid is the backbone of the UK's energy system, owning and maintaining the vast network of cables and pipes that keep the lights on and homes warm.
Read the full National Grid explainer →SSE, in one line
SSE is a major British energy company that generates electricity from renewable sources like wind and maintains the power grids that keep the lights on.
Read the full SSE explainer →What to weigh
If dividend income matters to you, the yields differ (4.1% National Grid vs 2.9% SSE). These are facts to understand, not a verdict - read each full explainer before deciding anything.
Common questions
Why are these shares called 'defensive'?
Demand for electricity barely changes in a downturn, and much of these companies' income is regulated or contracted, so results are steadier than most. That stability is the appeal for income investors - though regulation and debt costs are real risks.
How do interest rates affect utilities?
They carry a lot of debt to fund networks and projects, so higher rates raise their costs. Their steady, bond-like dividends also look relatively less attractive when safer savings rates rise, which can weigh on the shares.