ONE Gas, Inc. (OGS) vs Spire Inc. (SR)

ONE Gas, Inc. and Spire Inc. are both Utilities Regulated Gas companies. ONE Gas, Inc. and Spire Inc. are of similar size ($4.5B and $4.5B). Spire Inc. trades at the lower P/E: 8.6× against 15.4×. Spire Inc. grew revenue faster over the last twelve months: 17.0% against −0.78%. Spire Inc. has the higher net margin (19.8% vs 12.5%) and the lower return on invested capital (3.76% vs 4.87%). Both pay a dividend; Spire Inc. yields more (5.17% vs 4.31%). Across the 22 metrics below, Spire Inc. leads on 12 and ONE Gas, Inc. on 10.

Valuation

Metric OGS SR Utilities Regulated Gas median
P/E 15.41 8.59 15.65
P/S 1.96 1.70 2.04
P/B 1.28 1.27 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 9.04 11.49 11.49
EV/Sales 3.08 3.93 3.54
Earnings yield 6.49% 11.64% 6.39%
Free cash flow yield (3.82%) (4.88%) (5.71%)

Profitability

Metric OGS SR Utilities Regulated Gas median
Gross margin 63.13% 65.44% 63.14%
Operating margin 20.65% 21.47% 21.47%
Net margin 12.47% 19.81% 13.00%
Free cash flow margin (7.48%) (8.30%) (13.27%)
Return on equity 8.58% 15.57% 9.47%
Return on assets 3.36% 4.17% 3.80%
Return on invested capital 4.87% 3.76% 4.29%

Growth

Metric OGS SR Utilities Regulated Gas median
Revenue growth (TTM) (0.78%) 16.97% 6.36%
EPS growth (last fiscal year) 11.76% 4.30% —
Revenue growth, 5-year CAGR 9.67% 5.94% 6.36%
Net income growth, 5-year CAGR 6.11% 28.34% 8.10%

Health

Metric OGS SR Utilities Regulated Gas median
Debt to equity 0.74 1.67 1.22
Current ratio 0.48 0.37 0.78
Net debt to EBITDA 3.36 4.68 4.68

Dividend

Metric OGS SR Utilities Regulated Gas median
Dividend yield 4.31% 5.17% 4.31%
Payout ratio 0.62 0.66 0.62

Size

Metric OGS SR Utilities Regulated Gas median
Market cap 4.52b 4.54b 4.52b

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