Northwest Natural Gas Company (NWN) vs ONE Gas, Inc. (OGS)

Northwest Natural Gas Company and ONE Gas, Inc. are both Utilities Regulated Gas companies. ONE Gas, Inc. is the larger, with a market value of $4.5B against $2.0B — 2.3× the size. ONE Gas, Inc. trades at the lower P/E: 15.4× against 15.7×. Northwest Natural Gas Company grew revenue faster over the last twelve months: 4.41% against −0.78%. ONE Gas, Inc. has the higher net margin (12.5% vs 9.75%) and the higher return on invested capital (4.87% vs 4.44%). Both pay a dividend; Northwest Natural Gas Company yields more (5.49% vs 4.31%). Across the 22 metrics below, ONE Gas, Inc. leads on 12 and Northwest Natural Gas Company on 10.

Valuation

Metric NWN OGS Utilities Regulated Gas median
P/E 15.66 15.41 15.65
P/S 1.53 1.96 2.04
P/B 1.27 1.28 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 9.32 9.04 11.49
EV/Sales 3.54 3.08 3.54
Earnings yield 6.39% 6.49% 6.39%
Free cash flow yield (13.44%) (3.82%) (5.71%)

Profitability

Metric NWN OGS Utilities Regulated Gas median
Gross margin 70.76% 63.13% 63.14%
Operating margin 22.85% 20.65% 21.47%
Net margin 9.75% 12.47% 13.00%
Free cash flow margin (20.57%) (7.48%) (13.27%)
Return on equity 8.35% 8.58% 9.47%
Return on assets 2.06% 3.36% 3.80%
Return on invested capital 4.44% 4.87% 4.29%

Growth

Metric NWN OGS Utilities Regulated Gas median
Revenue growth (TTM) 4.41% (0.78%) 6.36%
EPS growth (last fiscal year) 36.45% 11.76% —
Revenue growth, 5-year CAGR 10.75% 9.67% 6.36%
Net income growth, 5-year CAGR 8.10% 6.11% 8.10%

Health

Metric NWN OGS Utilities Regulated Gas median
Debt to equity 1.68 0.74 1.22
Current ratio 0.77 0.48 0.78
Net debt to EBITDA 5.46 3.36 4.68

Dividend

Metric NWN OGS Utilities Regulated Gas median
Dividend yield 5.49% 4.31% 4.31%
Payout ratio 0.69 0.62 0.62

Size

Metric NWN OGS Utilities Regulated Gas median
Market cap 1.99b 4.52b 4.52b

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