Northwest Natural Gas Company (NWN) vs Suburban Propane Partners, L.P. (SPH)

Northwest Natural Gas Company and Suburban Propane Partners, L.P. are both Utilities Regulated Gas companies. Northwest Natural Gas Company is the larger, with a market value of $2.0B against $1.1B — 1.8× the size. Suburban Propane Partners, L.P. trades at the lower P/E: 8.4× against 15.7×. Northwest Natural Gas Company grew revenue faster over the last twelve months: 4.41% against −2.48%. Northwest Natural Gas Company has the higher net margin (9.75% vs 9.37%) and the lower return on invested capital (4.44% vs 6.83%). Both pay a dividend; Suburban Propane Partners, L.P. yields more (6.55% vs 5.49%). Across the 22 metrics below, Suburban Propane Partners, L.P. leads on 15 and Northwest Natural Gas Company on 7.

Valuation

Metric NWN SPH Utilities Regulated Gas median
P/E 15.66 8.43 15.65
P/S 1.53 0.79 2.04
P/B 1.27 1.55 1.50
Price to free cash flow n/m 10.58 —
EV/EBITDA 9.32 8.32 11.49
EV/Sales 3.54 1.67 3.54
Earnings yield 6.39% 11.87% 6.39%
Free cash flow yield (13.44%) 9.46% (5.71%)

Profitability

Metric NWN SPH Utilities Regulated Gas median
Gross margin 70.76% 63.14% 63.14%
Operating margin 22.85% 15.13% 21.47%
Net margin 9.75% 9.37% 13.00%
Free cash flow margin (20.57%) 7.51% (13.27%)
Return on equity 8.35% 19.23% 9.47%
Return on assets 2.06% 5.59% 3.80%
Return on invested capital 4.44% 6.83% 4.29%

Growth

Metric NWN SPH Utilities Regulated Gas median
Revenue growth (TTM) 4.41% (2.48%) 6.36%
EPS growth (last fiscal year) 36.45% 42.11% —
Revenue growth, 5-year CAGR 10.75% 5.27% 6.36%
Net income growth, 5-year CAGR 8.10% 11.89% 8.10%

Health

Metric NWN SPH Utilities Regulated Gas median
Debt to equity 1.68 1.72 1.22
Current ratio 0.77 0.78 0.78
Net debt to EBITDA 5.46 4.35 4.68

Dividend

Metric NWN SPH Utilities Regulated Gas median
Dividend yield 5.49% 6.55% 4.31%
Payout ratio 0.69 — 0.62

Size

Metric NWN SPH Utilities Regulated Gas median
Market cap 1.99b 1.10b 4.52b

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