Head-To-Head Analysis: Southwest Gas Corporation (SWX) & Its Peers

Southwest Gas Corporation (NYSE: SWX) is one of 15 public companies in the “Natural Gas Distribution” industry, but how does it weigh in compared to its peers? We will compare Southwest Gas Corporation to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, institutional ownership and valuation.

Dividends

Southwest Gas Corporation pays an annual dividend of $1.98 per share and has a dividend yield of 2.4%. Southwest Gas Corporation pays out 58.2% of its earnings in the form of a dividend. As a group, “Natural Gas Distribution” companies pay a dividend yield of 2.4% and pay out 62.2% of their earnings in the form of a dividend. Southwest Gas Corporation has raised its dividend for 5 consecutive years.

Risk and Volatility

Southwest Gas Corporation has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Southwest Gas Corporation’s peers have a beta of 0.42, indicating that their average stock price is 58% less volatile than the S&P 500.

Earnings & Valuation

This table compares Southwest Gas Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Southwest Gas Corporation $2.46 billion $152.04 million 24.27
Southwest Gas Corporation Competitors $2.04 billion $171.22 million 22.58

Southwest Gas Corporation has higher revenue, but lower earnings than its peers. Southwest Gas Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Southwest Gas Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southwest Gas Corporation 6.64% 9.56% 2.87%
Southwest Gas Corporation Competitors 4.76% -10.05% 3.46%

Institutional & Insider Ownership

75.7% of Southwest Gas Corporation shares are held by institutional investors. Comparatively, 65.4% of shares of all “Natural Gas Distribution” companies are held by institutional investors. 1.0% of Southwest Gas Corporation shares are held by company insiders. Comparatively, 2.2% of shares of all “Natural Gas Distribution” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Southwest Gas Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwest Gas Corporation 0 3 0 0 2.00
Southwest Gas Corporation Competitors 56 204 215 5 2.35

Southwest Gas Corporation currently has a consensus target price of $79.00, suggesting a potential downside of 4.25%. As a group, “Natural Gas Distribution” companies have a potential downside of 1.00%. Given Southwest Gas Corporation’s peers stronger consensus rating and higher possible upside, analysts plainly believe Southwest Gas Corporation has less favorable growth aspects than its peers.

Summary

Southwest Gas Corporation peers beat Southwest Gas Corporation on 8 of the 15 factors compared.

About Southwest Gas Corporation

Southwest Gas Holdings, Inc., formerly Southwest Gas Corporation, is engaged in the business of purchasing, distributing and transporting natural gas. The Company operates through two segments: natural gas operations and construction services, which includes the operations of the Company’s subsidiary, Centuri Construction Group, Inc. (Centuri). The Company operates two pipeline transmission systems, such as a system, which includes a liquefied natural gas (LNG) storage facility owned by Paiute extending from the Idaho-Nevada border to the Reno, Sparks, and Carson City areas and communities in the Lake Tahoe area in both California and Nevada and other communities in northern and western Nevada, and a system extending from the Colorado River at the southern tip of Nevada to the Las Vegas distribution area.

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