NewJersey Resources Corporation (NJR) vs Southwest Gas Corporation (SWX)

NewJersey Resources 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 $5.2B — 1.1× the size. Southwest Gas Corporation trades at the lower P/E: 10.7× against 13.9×. Southwest Gas Corporation grew revenue faster over the last twelve months: 103.7% against 6.36%. Southwest Gas Corporation has the higher net margin (31.4% vs 16.4%) and the lower return on invested capital (4.24% vs 5.47%). Both pay a dividend; Southwest Gas Corporation yields more (9.72% vs 4.10%). Across the 22 metrics below, Southwest Gas Corporation leads on 14 and NewJersey Resources Corporation on 8.

Valuation

Metric NJR SWX Utilities Regulated Gas median
P/E 13.90 10.75 15.65
P/S 2.29 3.43 2.04
P/B 1.94 1.45 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 11.65 10.91 11.49
EV/Sales 3.94 5.29 3.54
Earnings yield 7.19% 9.30% 6.39%
Free cash flow yield (3.05%) (8.83%) (5.71%)

Profitability

Metric NJR SWX Utilities Regulated Gas median
Gross margin 57.23% 85.21% 63.14%
Operating margin 24.78% 28.68% 21.47%
Net margin 16.42% 31.40% 13.00%
Free cash flow margin (7.00%) (30.32%) (13.27%)
Return on equity 14.45% 13.27% 9.47%
Return on assets 4.79% 4.82% 3.80%
Return on invested capital 5.47% 4.24% 4.29%

Growth

Metric NJR SWX Utilities Regulated Gas median
Revenue growth (TTM) 6.36% 103.66% 6.36%
EPS growth (last fiscal year) 14.04% 120.29% —
Revenue growth, 5-year CAGR 0.83% (10.07%) 6.36%
Net income growth, 5-year CAGR 15.54% 13.62% 8.10%

Health

Metric NJR SWX Utilities Regulated Gas median
Debt to equity 1.40 0.85 1.22
Current ratio 0.66 1.12 0.78
Net debt to EBITDA 5.17 3.64 4.68

Dividend

Metric NJR SWX Utilities Regulated Gas median
Dividend yield 4.10% 9.72% 4.31%
Payout ratio 0.53 1.03 0.62

Size

Metric NJR SWX Utilities Regulated Gas median
Market cap 5.18b 5.90b 4.52b

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