MDU Resources Group, Inc. (MDU) vs Northwest Natural Gas Company (NWN)

MDU Resources Group, Inc. and Northwest Natural Gas Company are both Utilities Regulated Gas companies. MDU Resources Group, Inc. is the larger, with a market value of $3.9B against $2.0B — 2.0× the size. Northwest Natural Gas Company trades at the lower P/E: 15.7× against 19.7×. Northwest Natural Gas Company grew revenue faster over the last twelve months: 4.41% against −1.13%. MDU Resources Group, Inc. has the higher net margin (10.8% vs 9.75%) and the lower return on invested capital (3.56% vs 4.44%). Both pay a dividend; Northwest Natural Gas Company yields more (5.49% vs 2.53%). Across the 22 metrics below, Northwest Natural Gas Company leads on 15 and MDU Resources Group, Inc. on 7.

Valuation

Metric MDU NWN Utilities Regulated Gas median
P/E 19.75 15.66 15.65
P/S 2.15 1.53 2.04
P/B 1.34 1.27 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 12.30 9.32 11.49
EV/Sales 3.53 3.54 3.54
Earnings yield 5.06% 6.39% 6.39%
Free cash flow yield (9.82%) (13.44%) (5.71%)

Profitability

Metric MDU NWN Utilities Regulated Gas median
Gross margin 58.68% 70.76% 63.14%
Operating margin 16.98% 22.85% 21.47%
Net margin 10.75% 9.75% 13.00%
Free cash flow margin (21.10%) (20.57%) (13.27%)
Return on equity 6.95% 8.35% 9.47%
Return on assets 2.68% 2.06% 3.80%
Return on invested capital 3.56% 4.44% 4.29%

Growth

Metric MDU NWN Utilities Regulated Gas median
Revenue growth (TTM) (1.13%) 4.41% 6.36%
EPS growth (last fiscal year) (32.12%) 36.45% —
Revenue growth, 5-year CAGR (19.46%) 10.75% 6.36%
Net income growth, 5-year CAGR (13.37%) 8.10% 8.10%

Health

Metric MDU NWN Utilities Regulated Gas median
Debt to equity 0.88 1.68 1.22
Current ratio 0.99 0.77 0.78
Net debt to EBITDA 5.31 5.46 4.68

Dividend

Metric MDU NWN Utilities Regulated Gas median
Dividend yield 2.53% 5.49% 4.31%
Payout ratio 0.36 0.69 0.62

Size

Metric MDU NWN Utilities Regulated Gas median
Market cap 3.92b 1.99b 4.52b

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