Atmos Energy Corporation (ATO) vs ONE Gas, Inc. (OGS)

Atmos Energy Corporation and ONE Gas, Inc. are both Utilities Regulated Gas companies. Atmos Energy Corporation is the larger, with a market value of $26.4B against $4.5B — 5.8× the size. ONE Gas, Inc. trades at the lower P/E: 15.4× against 18.5×. Atmos Energy Corporation grew revenue faster over the last twelve months: 6.45% against −0.78%. Atmos Energy Corporation has the higher net margin (28.5% vs 12.5%) and the lower return on invested capital (4.54% vs 4.87%). Both pay a dividend; ONE Gas, Inc. yields more (4.31% vs 2.76%). Across the 22 metrics below, ONE Gas, Inc. leads on 12 and Atmos Energy Corporation on 10.

Valuation

Metric ATO OGS Utilities Regulated Gas median
P/E 18.54 15.41 15.65
P/S 5.38 1.96 2.04
P/B 1.73 1.28 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 14.04 9.04 11.49
EV/Sales 7.37 3.08 3.54
Earnings yield 5.39% 6.49% 6.39%
Free cash flow yield (7.63%) (3.82%) (5.71%)

Profitability

Metric ATO OGS Utilities Regulated Gas median
Gross margin 80.28% 63.13% 63.14%
Operating margin 36.97% 20.65% 21.47%
Net margin 28.50% 12.47% 13.00%
Free cash flow margin (41.05%) (7.48%) (13.27%)
Return on equity 9.79% 8.58% 9.47%
Return on assets 4.73% 3.36% 3.80%
Return on invested capital 4.54% 4.87% 4.29%

Growth

Metric ATO OGS Utilities Regulated Gas median
Revenue growth (TTM) 6.45% (0.78%) 6.36%
EPS growth (last fiscal year) 9.22% 11.76% —
Revenue growth, 5-year CAGR 10.76% 9.67% 6.36%
Net income growth, 5-year CAGR 14.79% 6.11% 8.10%

Health

Metric ATO OGS Utilities Regulated Gas median
Debt to equity 0.68 0.74 1.22
Current ratio 0.81 0.48 0.78
Net debt to EBITDA 3.86 3.36 4.68

Dividend

Metric ATO OGS Utilities Regulated Gas median
Dividend yield 2.76% 4.31% 4.31%
Payout ratio 0.50 0.62 0.62

Size

Metric ATO OGS Utilities Regulated Gas median
Market cap 26.43b 4.52b 4.52b

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