WallStSmart

CMS Energy Corporation (CMS)vsNational Grid PLC ADR (NGG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

National Grid PLC ADR generates 105% more annual revenue ($17.48B vs $8.54B). NGG leads profitability with a 16.4% profit margin vs 12.5%. NGG appears more attractively valued with a PEG of 1.06. CMS earns a higher WallStSmart Score of 62/100 (C+).

CMS

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 6.5Value: 4.7Quality: 3.3
Piotroski: 3/9Altman Z: 0.67

NGG

Buy

50

out of 100

Grade: C-

Growth: 2.0Profit: 6.5Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMSSignificantly Overvalued (-21.6%)

Margin of Safety

-21.6%

Fair Value

$61.28

Current Price

$75.44

$14.16 premium

UndervaluedFair: $61.28Overvalued
NGGSignificantly Overvalued (-235.0%)

Margin of Safety

-235.0%

Fair Value

$27.06

Current Price

$84.29

$57.23 premium

UndervaluedFair: $27.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMS2 strengths · Avg: 8.0/10
Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

NGG2 strengths · Avg: 8.5/10
Market CapQuality
$81.59B9/10

Large-cap with strong market position

Operating MarginProfitability
24.1%8/10

Strong operational efficiency at 24.1%

Areas to Watch

CMS4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.872/10

Expensive relative to growth rate

Free Cash FlowQuality
$-596.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

NGG4 concerns · Avg: 3.0/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Debt/EquityHealth
1.233/10

Elevated debt levels

Revenue GrowthGrowth
-11.3%2/10

Revenue declined 11.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : CMS

The strongest argument for CMS centers on Price/Book, Operating Margin. Revenue growth of 12.3% demonstrates continued momentum.

Bull Case : NGG

The strongest argument for NGG centers on Market Cap, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 24.1%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bear Case : CMS

The primary concerns for CMS are Piotroski F-Score, PEG Ratio, Free Cash Flow.

Bear Case : NGG

The primary concerns for NGG are Price/Book, Return on Equity, Debt/Equity.

Key Dynamics to Monitor

CMS profiles as a value stock while NGG is a declining play — different risk/reward profiles.

NGG carries more volatility with a beta of 0.61 — expect wider price swings.

CMS is growing revenue faster at 12.3% — sustainability is the question.

CMS generates stronger free cash flow (-596M), providing more financial flexibility.

Bottom Line

CMS scores higher overall (62/100 vs 50/100) and 12.3% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CMS Energy Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

CMS Energy (NYSE: CMS), based in Jackson, Michigan, is an energy company that is focused principally on utility operations in Michigan.

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National Grid PLC ADR

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

National Grid plc transmits and distributes electricity and natural gas. The company is headquartered in London, the United Kingdom.

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