Spire Inc. (SR) vs Southwest Gas Corporation (SWX)

Spire 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. Spire Inc. trades at the lower P/E: 8.6× against 10.7×. Southwest Gas Corporation grew revenue faster over the last twelve months: 103.7% against 17.0%. Southwest Gas Corporation has the higher net margin (31.4% vs 19.8%) and the higher return on invested capital (4.24% vs 3.76%). Both pay a dividend; Southwest Gas Corporation yields more (9.72% vs 5.17%). Across the 22 metrics below, Southwest Gas Corporation leads on 12 and Spire Inc. on 10.

Valuation

Metric SR SWX Utilities Regulated Gas median
P/E 8.59 10.75 15.65
P/S 1.70 3.43 2.04
P/B 1.27 1.45 1.50
Price to free cash flow n/m n/m —
EV/EBITDA 11.49 10.91 11.49
EV/Sales 3.93 5.29 3.54
Earnings yield 11.64% 9.30% 6.39%
Free cash flow yield (4.88%) (8.83%) (5.71%)

Profitability

Metric SR SWX Utilities Regulated Gas median
Gross margin 65.44% 85.21% 63.14%
Operating margin 21.47% 28.68% 21.47%
Net margin 19.81% 31.40% 13.00%
Free cash flow margin (8.30%) (30.32%) (13.27%)
Return on equity 15.57% 13.27% 9.47%
Return on assets 4.17% 4.82% 3.80%
Return on invested capital 3.76% 4.24% 4.29%

Growth

Metric SR SWX Utilities Regulated Gas median
Revenue growth (TTM) 16.97% 103.66% 6.36%
EPS growth (last fiscal year) 4.30% 120.29% —
Revenue growth, 5-year CAGR 5.94% (10.07%) 6.36%
Net income growth, 5-year CAGR 28.34% 13.62% 8.10%

Health

Metric SR SWX Utilities Regulated Gas median
Debt to equity 1.67 0.85 1.22
Current ratio 0.37 1.12 0.78
Net debt to EBITDA 4.68 3.64 4.68

Dividend

Metric SR SWX Utilities Regulated Gas median
Dividend yield 5.17% 9.72% 4.31%
Payout ratio 0.66 1.03 0.62

Size

Metric SR SWX Utilities Regulated Gas median
Market cap 4.54b 5.90b 4.52b

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