Black Hills Corporation (BKH) vs MDU Resources Group, Inc. (MDU)

Black Hills Corporation and MDU Resources Group, Inc. are both Utilities Regulated Gas companies. Black Hills Corporation is the larger, with a market value of $5.3B against $3.9B — 1.4× the size. Black Hills Corporation trades at the lower P/E: 17.7× against 19.7×. Black Hills Corporation grew revenue faster over the last twelve months: 2.51% against −1.13%. Black Hills Corporation has the higher net margin (13.0% vs 10.8%) and the higher return on invested capital (4.11% vs 3.56%). Both pay a dividend; Black Hills Corporation yields more (5.06% vs 2.53%). Across the 22 metrics below, Black Hills Corporation leads on 17 and MDU Resources Group, Inc. on 5.

Valuation

Metric BKH MDU Utilities Regulated Gas median
P/E 17.75 19.75 15.65
P/S 2.33 2.15 2.04
P/B 1.33 1.34 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 11.32 12.30 11.49
EV/Sales 4.21 3.53 3.54
Earnings yield 5.63% 5.06% 6.39%
Free cash flow yield (5.71%) (9.82%) (5.71%)

Profitability

Metric BKH MDU Utilities Regulated Gas median
Gross margin 65.24% 58.68% 63.14%
Operating margin 23.87% 16.98% 21.47%
Net margin 13.00% 10.75% 13.00%
Free cash flow margin (13.27%) (21.10%) (13.27%)
Return on equity 7.72% 6.95% 9.47%
Return on assets 2.83% 2.68% 3.80%
Return on invested capital 4.11% 3.56% 4.29%

Growth

Metric BKH MDU Utilities Regulated Gas median
Revenue growth (TTM) 2.51% (1.13%) 6.36%
EPS growth (last fiscal year) 1.79% (32.12%) —
Revenue growth, 5-year CAGR 6.36% (19.46%) 6.36%
Net income growth, 5-year CAGR 5.08% (13.37%) 8.10%

Health

Metric BKH MDU Utilities Regulated Gas median
Debt to equity 1.09 0.88 1.22
Current ratio 0.52 0.99 0.78
Net debt to EBITDA 5.43 5.31 4.68

Dividend

Metric BKH MDU Utilities Regulated Gas median
Dividend yield 5.06% 2.53% 4.31%
Payout ratio 0.67 0.36 0.62

Size

Metric BKH MDU Utilities Regulated Gas median
Market cap 5.33b 3.92b 4.52b

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