Suburban Propane Partners, L.P. (SPH) vs Spire Inc. (SR)

Suburban Propane Partners, L.P. and Spire Inc. are both Utilities Regulated Gas companies. Spire Inc. is the larger, with a market value of $4.6B against $1.1B — 4.0× the size. Suburban Propane Partners, L.P. trades at the lower P/E: 8.7× against 8.7×. Spire Inc. grew revenue faster over the last twelve months: 17.0% against −2.48%. Spire Inc. has the higher net margin (19.8% vs 9.37%) and the lower return on invested capital (3.76% vs 6.83%). Both pay a dividend; Suburban Propane Partners, L.P. yields more (7.61% vs 4.21%). Across the 22 metrics below, Suburban Propane Partners, L.P. leads on 14 and Spire Inc. on 8.

Valuation

Metric SPH SR Utilities Regulated Gas median
P/E 8.68 8.72 16.06
P/S 0.82 1.73 2.12
P/B 1.60 1.29 1.53
Price to free cash flow 10.89 n/m —
EV/EBITDA 8.44 11.57 11.73
EV/Sales 1.69 3.95 3.56
Earnings yield 11.53% 11.46% 6.16%
Free cash flow yield 9.18% (4.81%) (5.29%)

Profitability

Metric SPH SR Utilities Regulated Gas median
Gross margin 63.14% 65.44% 63.14%
Operating margin 15.13% 21.47% 21.47%
Net margin 9.37% 19.81% 13.00%
Free cash flow margin 7.51% (8.30%) (13.27%)
Return on equity 19.23% 15.57% 9.47%
Return on assets 5.59% 4.17% 3.80%
Return on invested capital 6.83% 3.76% 4.29%

Growth

Metric SPH SR Utilities Regulated Gas median
Revenue growth (TTM) (2.48%) 16.97% 6.36%
EPS growth (last fiscal year) 42.11% 4.30% 14.04%
Revenue growth, 5-year CAGR 5.27% 5.94% 6.36%
Net income growth, 5-year CAGR 11.89% 28.34% 8.10%

Health

Metric SPH SR Utilities Regulated Gas median
Debt to equity 1.72 1.67 1.22
Current ratio 0.78 0.37 0.78
Net debt to EBITDA 4.35 4.68 4.68

Dividend

Metric SPH SR Utilities Regulated Gas median
Dividend yield 7.61% 4.21% 3.74%
Payout ratio 0.66 0.37 0.58

Size

Metric SPH SR Utilities Regulated Gas median
Market cap 1.14b 4.61b 4.55b

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