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Stock Comparison · Industry comparison · Utilities - Regulated Water

Pennon Group vs Severn Trent: Which Stock Looks Stronger in 2026?

Severn Trent holds the cleaner structural position, with valuation as the main driver and profitability adding further support. Pennon does not offset that deficit through any equally strong structural edge elsewhere. Both sides have seen trend damage — neither carries a clear market edge right now. With both trends damaged, the structural comparison carries most of the weight here.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the STOXX 600 universe, making them directly comparable.

Updated 2026-05-17

The clearest separation starts in valuation, but profitability adds another real layer to the result. The overall score gap is 18 points in favour of Severn Trent PLC.

INDUSTRY COMPARISON

Both operate in: Utilities - Regulated Water

This comparison is based on industry proximity, not on functional trajectory similarity. PNN.L and SVT.L share the same industry classification.

For a similarity-based comparison, see how Pennon and Severn Trent each position within their functional peer groups in AssetNext.

Peer-Relative Score
PNN.L
Pennon Group Plc
28
Peer-Score
Signal qualitylow
Peer basis: STOXX 600
vs
SVT.L
Severn Trent PLC
46
Peer-Score
Signal qualitylow
Peer basis: STOXX 600

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

Pricing and operating quality both support the lead here.

Dimension spread: PNN.L vs SVT.L Profitability 10 29 Stability 7 25 Valuation 12 45 Growth 100 94 PNN.L SVT.L
Gap Ranking
#1 Valuation +33
#2 Profitability +19
#3 Stability +18
#4 Growth +6
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for PNN.L and SVT.L Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer PNN.LSVT.L Relative valuation Structural strength

Severn Trent PLC looks stronger on relative valuation, while the broader price setup remains mixed.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Relative Position vs Comparable Companies
Valuation
Valuation also leans toward Severn Trent PLC, reinforcing the broader structural lead.
Profitability
Neither side looks especially strong on profitability, though Severn Trent PLC still ranks somewhat higher.
Valuation — Dominant Gap
PNN.L
12
SVT.L
45
Gap+33in favour of SVT.L

The multiple-based pricing edge comes from a trailing P/E that is 70 turns lower.

What else supports the lead

Profitability gives the lead a second hard layer of support, with a 7.9-point operating margin advantage.

What this means for the comparison

Valuation is the clearest driver, and profitability also supports Severn Trent PLC's broader structural position.

Explore full peer positioning in AssetNext

Break down the PNN.L vs SVT.L comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Similar valuation-and-profitability comparisons

Explore how PNN.L and SVT.L each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.