NiSource, Inc (NI) vs Southwest Gas Corporation (SWX)

NiSource, Inc and Southwest Gas Corporation are both Utilities Regulated Gas companies. NiSource, Inc is the larger, with a market value of $18.8B against $5.9B — 3.2× the size. Southwest Gas Corporation trades at the lower P/E: 10.7× against 21.0×. Southwest Gas Corporation grew revenue faster over the last twelve months: 103.7% against 12.3%. Southwest Gas Corporation has the higher net margin (31.4% vs 13.2%) and the higher return on invested capital (4.24% vs 3.98%). Both pay a dividend; Southwest Gas Corporation yields more (9.72% vs 3.99%). Across the 22 metrics below, Southwest Gas Corporation leads on 17 and NiSource, Inc on 5.

Valuation

Metric NI SWX Utilities Regulated Gas median
P/E 20.97 10.75 15.65
P/S 2.75 3.43 2.04
P/B 1.59 1.45 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 11.56 10.91 11.49
EV/Sales 5.26 5.29 3.54
Earnings yield 4.77% 9.30% 6.39%
Free cash flow yield (5.74%) (8.83%) (5.71%)

Profitability

Metric NI SWX Utilities Regulated Gas median
Gross margin 77.65% 85.21% 63.14%
Operating margin 27.03% 28.68% 21.47%
Net margin 13.20% 31.40% 13.00%
Free cash flow margin (15.78%) (30.32%) (13.27%)
Return on equity 7.94% 13.27% 9.47%
Return on assets 2.54% 4.82% 3.80%
Return on invested capital 3.98% 4.24% 4.29%

Growth

Metric NI SWX Utilities Regulated Gas median
Revenue growth (TTM) 12.25% 103.66% 6.36%
EPS growth (last fiscal year) 20.37% 120.29% —
Revenue growth, 5-year CAGR 7.25% (10.07%) 6.36%
Net income growth, 5-year CAGR 0.00% 13.62% 8.10%

Health

Metric NI SWX Utilities Regulated Gas median
Debt to equity 1.46 0.85 1.22
Current ratio 0.50 1.12 0.78
Net debt to EBITDA 5.35 3.64 4.68

Dividend

Metric NI SWX Utilities Regulated Gas median
Dividend yield 3.99% 9.72% 4.31%
Payout ratio 0.67 1.03 0.62

Size

Metric NI SWX Utilities Regulated Gas median
Market cap 18.76b 5.90b 4.52b

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