Black Hills Corporation (BKH) vs NewJersey Resources Corporation (NJR)

Black Hills Corporation and NewJersey Resources Corporation are both Utilities Regulated Gas companies. Black Hills Corporation and NewJersey Resources Corporation are of similar size ($5.3B and $5.2B). NewJersey Resources Corporation trades at the lower P/E: 13.9× against 17.7×. NewJersey Resources Corporation grew revenue faster over the last twelve months: 6.36% against 2.51%. NewJersey Resources Corporation has the higher net margin (16.4% vs 13.0%) and the higher return on invested capital (5.47% vs 4.11%). Both pay a dividend; Black Hills Corporation yields more (5.06% vs 4.10%). Across the 22 metrics below, NewJersey Resources Corporation leads on 16 and Black Hills Corporation on 6.

Valuation

Metric BKH NJR Utilities Regulated Gas median
P/E 17.75 13.90 15.65
P/S 2.33 2.29 2.04
P/B 1.33 1.94 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 11.32 11.65 11.49
EV/Sales 4.21 3.94 3.54
Earnings yield 5.63% 7.19% 6.39%
Free cash flow yield (5.71%) (3.05%) (5.71%)

Profitability

Metric BKH NJR Utilities Regulated Gas median
Gross margin 65.24% 57.23% 63.14%
Operating margin 23.87% 24.78% 21.47%
Net margin 13.00% 16.42% 13.00%
Free cash flow margin (13.27%) (7.00%) (13.27%)
Return on equity 7.72% 14.45% 9.47%
Return on assets 2.83% 4.79% 3.80%
Return on invested capital 4.11% 5.47% 4.29%

Growth

Metric BKH NJR Utilities Regulated Gas median
Revenue growth (TTM) 2.51% 6.36% 6.36%
EPS growth (last fiscal year) 1.79% 14.04% —
Revenue growth, 5-year CAGR 6.36% 0.83% 6.36%
Net income growth, 5-year CAGR 5.08% 15.54% 8.10%

Health

Metric BKH NJR Utilities Regulated Gas median
Debt to equity 1.09 1.40 1.22
Current ratio 0.52 0.66 0.78
Net debt to EBITDA 5.43 5.17 4.68

Dividend

Metric BKH NJR Utilities Regulated Gas median
Dividend yield 5.06% 4.10% 4.31%
Payout ratio 0.67 0.53 0.62

Size

Metric BKH NJR Utilities Regulated Gas median
Market cap 5.33b 5.18b 4.52b

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