Chesapeake Utilities Corporation (CPK) vs Southwest Gas Corporation (SWX)

Chesapeake Utilities Corporation and Southwest Gas Corporation are both Utilities Regulated Gas companies. Southwest Gas Corporation is the larger, with a market value of $5.9B against $3.1B — 1.9× the size. Southwest Gas Corporation trades at the lower P/E: 10.7× against 20.4×. Southwest Gas Corporation grew revenue faster over the last twelve months: 103.7% against 14.6%. Southwest Gas Corporation has the higher net margin (31.4% vs 15.1%) and the lower return on invested capital (4.24% vs 5.04%). Both pay a dividend; Southwest Gas Corporation yields more (9.72% vs 2.25%). Across the 22 metrics below, Southwest Gas Corporation leads on 15 and Chesapeake Utilities Corporation on 7.

Valuation

Metric CPK SWX Utilities Regulated Gas median
P/E 20.44 10.75 15.65
P/S 3.12 3.43 2.04
P/B 1.85 1.45 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 12.62 10.91 11.49
EV/Sales 4.82 5.29 3.54
Earnings yield 4.89% 9.30% 6.39%
Free cash flow yield (5.81%) (8.83%) (5.71%)

Profitability

Metric CPK SWX Utilities Regulated Gas median
Gross margin 67.41% 85.21% 63.14%
Operating margin 27.29% 28.68% 21.47%
Net margin 15.12% 31.40% 13.00%
Free cash flow margin (18.13%) (30.32%) (13.27%)
Return on equity 9.47% 13.27% 9.47%
Return on assets 3.80% 4.82% 3.80%
Return on invested capital 5.04% 4.24% 4.29%

Growth

Metric CPK SWX Utilities Regulated Gas median
Revenue growth (TTM) 14.63% 103.66% 6.36%
EPS growth (last fiscal year) 13.50% 120.29% —
Revenue growth, 5-year CAGR 13.76% (10.07%) 6.36%
Net income growth, 5-year CAGR 14.43% 13.62% 8.10%

Health

Metric CPK SWX Utilities Regulated Gas median
Debt to equity 1.01 0.85 1.22
Current ratio 0.32 1.12 0.78
Net debt to EBITDA 4.45 3.64 4.68

Dividend

Metric CPK SWX Utilities Regulated Gas median
Dividend yield 2.25% 9.72% 4.31%
Payout ratio 0.44 1.03 0.62

Size

Metric CPK SWX Utilities Regulated Gas median
Market cap 3.09b 5.90b 4.52b

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