ONE Gas, Inc. (OGS) vs Southwest Gas Corporation (SWX)

ONE Gas, Inc. and Southwest Gas Corporation are both Utilities Regulated Gas companies. Southwest Gas Corporation is the larger, with a market value of $5.9B against $4.5B — 1.3× the size. Southwest Gas Corporation trades at the lower P/E: 10.7× against 15.4×. Southwest Gas Corporation grew revenue faster over the last twelve months: 103.7% against −0.78%. Southwest Gas Corporation has the higher net margin (31.4% vs 12.5%) and the lower return on invested capital (4.24% vs 4.87%). Both pay a dividend; Southwest Gas Corporation yields more (9.72% vs 4.31%). Across the 22 metrics below, Southwest Gas Corporation leads on 12 and ONE Gas, Inc. on 10.

Valuation

Metric OGS SWX Utilities Regulated Gas median
P/E 15.41 10.75 15.65
P/S 1.96 3.43 2.04
P/B 1.28 1.45 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 9.04 10.91 11.49
EV/Sales 3.08 5.29 3.54
Earnings yield 6.49% 9.30% 6.39%
Free cash flow yield (3.82%) (8.83%) (5.71%)

Profitability

Metric OGS SWX Utilities Regulated Gas median
Gross margin 63.13% 85.21% 63.14%
Operating margin 20.65% 28.68% 21.47%
Net margin 12.47% 31.40% 13.00%
Free cash flow margin (7.48%) (30.32%) (13.27%)
Return on equity 8.58% 13.27% 9.47%
Return on assets 3.36% 4.82% 3.80%
Return on invested capital 4.87% 4.24% 4.29%

Growth

Metric OGS SWX Utilities Regulated Gas median
Revenue growth (TTM) (0.78%) 103.66% 6.36%
EPS growth (last fiscal year) 11.76% 120.29% —
Revenue growth, 5-year CAGR 9.67% (10.07%) 6.36%
Net income growth, 5-year CAGR 6.11% 13.62% 8.10%

Health

Metric OGS SWX Utilities Regulated Gas median
Debt to equity 0.74 0.85 1.22
Current ratio 0.48 1.12 0.78
Net debt to EBITDA 3.36 3.64 4.68

Dividend

Metric OGS SWX Utilities Regulated Gas median
Dividend yield 4.31% 9.72% 4.31%
Payout ratio 0.62 1.03 0.62

Size

Metric OGS SWX Utilities Regulated Gas median
Market cap 4.52b 5.90b 4.52b

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