Contrasting Corning Natural Gas (CNIG) & Southwest Gas (SWX)

Corning Natural Gas (OTCMKTS:CNIG) and Southwest Gas (NYSE:SWX) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Volatility & Risk

Corning Natural Gas has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Southwest Gas has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Earnings & Valuation

This table compares Corning Natural Gas and Southwest Gas’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Corning Natural Gas $30.04 million 1.88 $2.10 million N/A N/A
Southwest Gas $2.55 billion 1.52 $193.84 million $3.62 21.85

Southwest Gas has higher revenue and earnings than Corning Natural Gas.

Profitability

This table compares Corning Natural Gas and Southwest Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corning Natural Gas 7.18% 8.15% 2.49%
Southwest Gas 7.51% 10.22% 3.01%

Institutional & Insider Ownership

4.3% of Corning Natural Gas shares are owned by institutional investors. Comparatively, 83.2% of Southwest Gas shares are owned by institutional investors. 30.6% of Corning Natural Gas shares are owned by insiders. Comparatively, 1.0% of Southwest Gas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Corning Natural Gas pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Southwest Gas pays an annual dividend of $2.08 per share and has a dividend yield of 2.6%. Southwest Gas pays out 57.5% of its earnings in the form of a dividend. Southwest Gas has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Corning Natural Gas and Southwest Gas, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corning Natural Gas 0 0 0 0 N/A
Southwest Gas 1 3 1 0 2.00

Southwest Gas has a consensus target price of $77.40, indicating a potential downside of 2.15%. Given Southwest Gas’ higher possible upside, analysts clearly believe Southwest Gas is more favorable than Corning Natural Gas.

Summary

Southwest Gas beats Corning Natural Gas on 9 of the 14 factors compared between the two stocks.

About Corning Natural Gas

Corning Natural Gas Holding Corporation, through its subsidiaries, distributes natural gas and electricity. The company offers natural gas to approximately 15,000 customers through approximately 425 miles of distribution main and 86 regulating stations; and electricity to approximately 4,600 customers through approximately 160 miles of electric distribution wire and poles, and 21 miles of gas distribution pipe. It also transports and compresses gas for a gas producer from its gathering network into an interstate pipeline. The company serves residential, commercial, industrial, and municipal customers in the Corning, Hammondsport, and Virgil areas, as well as in Pike county; and distributes to two other gas utilities that serve the Elmira and Bath areas of New York. Corning Natural Gas Holding Corporation was founded in 1904 and is headquartered in Corning, New York.

About Southwest Gas

Southwest Gas Holdings, Inc., through its subsidiaries, purchases, distributes, and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Operations and Construction Services segments. As of December 31, 2017, it had 2,015,000 residential, commercial, industrial, and other natural gas customers. The company installs, replaces, repairs, and maintains energy distribution systems from the town border station to the end-user; and develops industrial construction solutions. The company also serves customers in the provinces of British Columbia and Ontario in Canada. Southwest Gas Holdings, Inc. was founded in 1931 and is headquartered in Las Vegas, Nevada.

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