Southwest Gas Corporation (SWX) vs UGI Corporation (UGI)

Southwest Gas Corporation and UGI Corporation are both Utilities Regulated Gas companies. UGI Corporation is the larger, with a market value of $7.8B against $5.9B — 1.3× the size. Southwest Gas Corporation trades at the lower P/E: 10.7× against 11.7×. Southwest Gas Corporation grew revenue faster over the last twelve months: 103.7% against −0.49%. Southwest Gas Corporation has the higher net margin (31.4% vs 9.20%) and the lower return on invested capital (4.24% vs 6.28%). Both pay a dividend; Southwest Gas Corporation yields more (9.72% vs 6.49%). Across the 22 metrics below, Southwest Gas Corporation leads on 12 and UGI Corporation on 10.

Valuation

Metric SWX UGI Utilities Regulated Gas median
P/E 10.75 11.70 15.65
P/S 3.43 1.07 2.04
P/B 1.45 1.50 1.50
Price to free cash flow n/m 19.50 —
EV/EBITDA 10.91 8.25 11.49
EV/Sales 5.29 1.97 3.54
Earnings yield 9.30% 8.55% 6.39%
Free cash flow yield (8.83%) 5.13% (5.71%)

Profitability

Metric SWX UGI Utilities Regulated Gas median
Gross margin 85.21% 51.34% 63.14%
Operating margin 28.68% 16.19% 21.47%
Net margin 31.40% 9.20% 13.00%
Free cash flow margin (30.32%) 5.51% (13.27%)
Return on equity 13.27% 13.28% 9.47%
Return on assets 4.82% 4.33% 3.80%
Return on invested capital 4.24% 6.28% 4.29%

Growth

Metric SWX UGI Utilities Regulated Gas median
Revenue growth (TTM) 103.66% (0.49%) 6.36%
EPS growth (last fiscal year) 120.29% 147.20% —
Revenue growth, 5-year CAGR (10.07%) 2.13% 6.36%
Net income growth, 5-year CAGR 13.62% 4.97% 8.10%

Health

Metric SWX UGI Utilities Regulated Gas median
Debt to equity 0.85 1.35 1.22
Current ratio 1.12 1.44 0.78
Net debt to EBITDA 3.64 4.06 4.68

Dividend

Metric SWX UGI Utilities Regulated Gas median
Dividend yield 9.72% 6.49% 4.31%
Payout ratio 1.03 0.28 0.62

Size

Metric SWX UGI Utilities Regulated Gas median
Market cap 5.90b 7.80b 4.52b

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