NewJersey Resources Corporation (NJR) vs ONE Gas, Inc. (OGS)

NewJersey Resources Corporation and ONE Gas, Inc. are both Utilities Regulated Gas companies. NewJersey Resources Corporation is the larger, with a market value of $5.2B against $4.5B — 1.1× the size. NewJersey Resources Corporation trades at the lower P/E: 13.9× against 15.4×. NewJersey Resources Corporation grew revenue faster over the last twelve months: 6.36% against −0.78%. NewJersey Resources Corporation has the higher net margin (16.4% vs 12.5%) and the higher return on invested capital (5.47% vs 4.87%). Both pay a dividend; ONE Gas, Inc. yields more (4.31% vs 4.10%). Across the 22 metrics below, NewJersey Resources Corporation leads on 13 and ONE Gas, Inc. on 9.

Valuation

Metric NJR OGS Utilities Regulated Gas median
P/E 13.90 15.41 15.65
P/S 2.29 1.96 2.04
P/B 1.94 1.28 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 11.65 9.04 11.49
EV/Sales 3.94 3.08 3.54
Earnings yield 7.19% 6.49% 6.39%
Free cash flow yield (3.05%) (3.82%) (5.71%)

Profitability

Metric NJR OGS Utilities Regulated Gas median
Gross margin 57.23% 63.13% 63.14%
Operating margin 24.78% 20.65% 21.47%
Net margin 16.42% 12.47% 13.00%
Free cash flow margin (7.00%) (7.48%) (13.27%)
Return on equity 14.45% 8.58% 9.47%
Return on assets 4.79% 3.36% 3.80%
Return on invested capital 5.47% 4.87% 4.29%

Growth

Metric NJR OGS Utilities Regulated Gas median
Revenue growth (TTM) 6.36% (0.78%) 6.36%
EPS growth (last fiscal year) 14.04% 11.76% —
Revenue growth, 5-year CAGR 0.83% 9.67% 6.36%
Net income growth, 5-year CAGR 15.54% 6.11% 8.10%

Health

Metric NJR OGS Utilities Regulated Gas median
Debt to equity 1.40 0.74 1.22
Current ratio 0.66 0.48 0.78
Net debt to EBITDA 5.17 3.36 4.68

Dividend

Metric NJR OGS Utilities Regulated Gas median
Dividend yield 4.10% 4.31% 4.31%
Payout ratio 0.53 0.62 0.62

Size

Metric NJR OGS Utilities Regulated Gas median
Market cap 5.18b 4.52b 4.52b

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