NiSource, Inc (NI) vs ONE Gas, Inc. (OGS)

NiSource, Inc and ONE Gas, Inc. are both Utilities Regulated Gas companies. NiSource, Inc is the larger, with a market value of $18.8B against $4.5B — 4.2× the size. ONE Gas, Inc. trades at the lower P/E: 15.4× against 21.0×. NiSource, Inc grew revenue faster over the last twelve months: 12.3% against −0.78%. NiSource, Inc has the higher net margin (13.2% vs 12.5%) and the lower return on invested capital (3.98% vs 4.87%). Both pay a dividend; ONE Gas, Inc. yields more (4.31% vs 3.99%). Across the 22 metrics below, ONE Gas, Inc. leads on 16 and NiSource, Inc on 6.

Valuation

Metric NI OGS Utilities Regulated Gas median
P/E 20.97 15.41 15.65
P/S 2.75 1.96 2.04
P/B 1.59 1.28 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 11.56 9.04 11.49
EV/Sales 5.26 3.08 3.54
Earnings yield 4.77% 6.49% 6.39%
Free cash flow yield (5.74%) (3.82%) (5.71%)

Profitability

Metric NI OGS Utilities Regulated Gas median
Gross margin 77.65% 63.13% 63.14%
Operating margin 27.03% 20.65% 21.47%
Net margin 13.20% 12.47% 13.00%
Free cash flow margin (15.78%) (7.48%) (13.27%)
Return on equity 7.94% 8.58% 9.47%
Return on assets 2.54% 3.36% 3.80%
Return on invested capital 3.98% 4.87% 4.29%

Growth

Metric NI OGS Utilities Regulated Gas median
Revenue growth (TTM) 12.25% (0.78%) 6.36%
EPS growth (last fiscal year) 20.37% 11.76% —
Revenue growth, 5-year CAGR 7.25% 9.67% 6.36%
Net income growth, 5-year CAGR 0.00% 6.11% 8.10%

Health

Metric NI OGS Utilities Regulated Gas median
Debt to equity 1.46 0.74 1.22
Current ratio 0.50 0.48 0.78
Net debt to EBITDA 5.35 3.36 4.68

Dividend

Metric NI OGS Utilities Regulated Gas median
Dividend yield 3.99% 4.31% 4.31%
Payout ratio 0.67 0.62 0.62

Size

Metric NI OGS Utilities Regulated Gas median
Market cap 18.76b 4.52b 4.52b

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