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 $6.6B against $5.6B — 1.2× the size. NewJersey Resources Corporation trades at the lower P/E: 15.0× against 22.1×. NewJersey Resources Corporation grew revenue faster over the last twelve months: 6.36% against −36.9%. Southwest Gas Corporation has the higher net margin (16.8% vs 16.4%) and the lower return on invested capital (4.11% vs 5.47%). Both pay a dividend; NewJersey Resources Corporation yields more (3.52% vs 2.80%). Across the 22 metrics below, NewJersey Resources Corporation leads on 13 and Southwest Gas Corporation on 9.

Valuation

Metric NJR SWX Utilities Regulated Gas median
P/E 15.02 22.07 18.45
P/S 2.48 3.81 2.24
P/B 2.09 1.60 1.60
Price to free cash flow n/m n/m —
EV/EBITDA 12.19 11.88 12.21
EV/Sales 4.13 5.83 3.95
Earnings yield 6.66% 4.53% 5.44%
Free cash flow yield (2.82%) (8.74%) (4.57%)

Profitability

Metric NJR SWX Utilities Regulated Gas median
Gross margin 57.23% 86.36% 63.29%
Operating margin 24.78% 28.91% 22.80%
Net margin 16.42% 16.78% 13.27%
Free cash flow margin (7.00%) (33.29%) (11.13%)
Return on equity 14.45% 7.20% 9.10%
Return on assets 4.79% 2.77% 3.58%
Return on invested capital 5.47% 4.11% 4.40%

Growth

Metric NJR SWX Utilities Regulated Gas median
Revenue growth (TTM) 6.36% (36.91%) 3.64%
EPS growth (last fiscal year) 14.04% 120.29% 13.77%
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 0.86 1.15
Current ratio 0.66 0.89 0.80
Net debt to EBITDA 5.17 3.64 4.57

Dividend

Metric NJR SWX Utilities Regulated Gas median
Dividend yield 3.52% 2.80% 3.32%
Payout ratio 0.53 0.62 0.59

Size

Metric NJR SWX Utilities Regulated Gas median
Market cap 5.55b 6.56b 5.26b

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