Black Hills Corporation (BKH) vs UGI Corporation (UGI)

Black Hills Corporation and UGI Corporation are both Utilities Regulated Gas companies. UGI Corporation is the larger, with a market value of $7.8B against $5.3B — 1.5× the size. UGI Corporation trades at the lower P/E: 11.7× against 17.7×. Black Hills Corporation grew revenue faster over the last twelve months: 2.51% against −0.49%. Black Hills Corporation has the higher net margin (13.0% vs 9.20%) and the lower return on invested capital (4.11% vs 6.28%). Both pay a dividend; UGI Corporation yields more (6.49% vs 5.06%). Across the 22 metrics below, UGI Corporation leads on 14 and Black Hills Corporation on 8.

Valuation

Metric BKH UGI Utilities Regulated Gas median
P/E 17.75 11.70 15.65
P/S 2.33 1.07 2.04
P/B 1.33 1.50 1.50
Price to free cash flow n/m 19.50 —
EV/EBITDA 11.32 8.25 11.49
EV/Sales 4.21 1.97 3.54
Earnings yield 5.63% 8.55% 6.39%
Free cash flow yield (5.71%) 5.13% (5.71%)

Profitability

Metric BKH UGI Utilities Regulated Gas median
Gross margin 65.24% 51.34% 63.14%
Operating margin 23.87% 16.19% 21.47%
Net margin 13.00% 9.20% 13.00%
Free cash flow margin (13.27%) 5.51% (13.27%)
Return on equity 7.72% 13.28% 9.47%
Return on assets 2.83% 4.33% 3.80%
Return on invested capital 4.11% 6.28% 4.29%

Growth

Metric BKH UGI Utilities Regulated Gas median
Revenue growth (TTM) 2.51% (0.49%) 6.36%
EPS growth (last fiscal year) 1.79% 147.20% —
Revenue growth, 5-year CAGR 6.36% 2.13% 6.36%
Net income growth, 5-year CAGR 5.08% 4.97% 8.10%

Health

Metric BKH UGI Utilities Regulated Gas median
Debt to equity 1.09 1.35 1.22
Current ratio 0.52 1.44 0.78
Net debt to EBITDA 5.43 4.06 4.68

Dividend

Metric BKH UGI Utilities Regulated Gas median
Dividend yield 5.06% 6.49% 4.31%
Payout ratio 0.67 0.28 0.62

Size

Metric BKH UGI Utilities Regulated Gas median
Market cap 5.33b 7.80b 4.52b

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