ONE Gas, Inc. (OGS) vs OPAL Fuels Inc. (OPAL)

ONE Gas, Inc. and OPAL Fuels Inc. are both Utilities Regulated Gas companies. ONE Gas, Inc. is the larger, with a market value of $4.5B against $321.4M — 14.1× the size. OPAL Fuels Inc. has negative trailing earnings, so its P/E is not meaningful; ONE Gas, Inc. trades at 15.4×. OPAL Fuels Inc. grew revenue faster over the last twelve months: 3.02% against −0.78%. ONE Gas, Inc. has the higher net margin (12.5% vs −0.13%) and the higher return on invested capital (4.87% vs 0.39%). Across the 18 metrics below, ONE Gas, Inc. leads on 13 and OPAL Fuels Inc. on 5.

Valuation

Metric OGS OPAL Utilities Regulated Gas median
P/E 15.41 n/m 15.65
P/S 1.96 0.16 2.04
P/B 1.28 1.45 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 9.04 14.56 11.49
EV/Sales 3.08 1.16 3.54
Earnings yield 6.49% (0.54%) 6.39%
Free cash flow yield (3.82%) (87.42%) (5.71%)

Profitability

Metric OGS OPAL Utilities Regulated Gas median
Gross margin 63.13% 29.42% 63.14%
Operating margin 20.65% 0.69% 21.47%
Net margin 12.47% (0.13%) 13.00%
Free cash flow margin (7.48%) (14.10%) (13.27%)
Return on equity 8.58% (5.45%) 9.47%
Return on assets 3.36% (0.04%) 3.80%
Return on invested capital 4.87% 0.39% 4.29%

Growth

Metric OGS OPAL Utilities Regulated Gas median
Revenue growth (TTM) (0.78%) 3.02% 6.36%
EPS growth (last fiscal year) 11.76% 650.00% —
Revenue growth, 5-year CAGR 9.67% — 6.36%
Net income growth, 5-year CAGR 6.11% — 8.10%

Health

Metric OGS OPAL Utilities Regulated Gas median
Debt to equity 0.74 11.39 1.22
Current ratio 0.48 1.82 0.78
Net debt to EBITDA 3.36 10.02 4.68

Dividend

Metric OGS OPAL Utilities Regulated Gas median
Dividend yield 4.31% — 4.31%
Payout ratio 0.62 0.00 0.62

Size

Metric OGS OPAL Utilities Regulated Gas median
Market cap 4.52b 321.43m 4.52b

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