Contrasting Centuri (NYSE:CTRI) & NorthWestern (NASDAQ:NWE)

Centuri (NYSE:CTRI) and NorthWestern (NASDAQ:NWE) are both mid-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares Centuri and NorthWestern”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centuri	$2.98 billion	1.01	$22.40 million	$0.34	88.00
NorthWestern	$1.61 billion	2.73	$181.09 million	$2.72	26.28

NorthWestern has lower revenue, but higher earnings than Centuri. NorthWestern is trading at a lower price-to-earnings ratio than Centuri, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Centuri and NorthWestern, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centuri	2	1	2	0	2.00
NorthWestern	1	2	3	0	2.33

Centuri currently has a consensus price target of $37.80, indicating a potential upside of 26.34%. NorthWestern has a consensus price target of $68.30, indicating a potential downside of 4.45%. Given Centuri’s higher possible upside, analysts clearly believe Centuri is more favorable than NorthWestern.

Profitability

This table compares Centuri and NorthWestern’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centuri	0.98%	5.64%	1.81%
NorthWestern	10.21%	7.80%	2.69%

Institutional and Insider Ownership

96.1% of NorthWestern shares are held by institutional investors. 0.3% of Centuri shares are held by company insiders. Comparatively, 0.6% of NorthWestern shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Centuri has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, NorthWestern has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Summary

NorthWestern beats Centuri on 10 of the 14 factors compared between the two stocks.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.

About NorthWestern

NorthWestern Energy Group, Inc. provides electricity and natural gas to residential, commercial, and various industrial customers. It generates, purchases, transmits, and distributes electricity; and produces, purchases, stores, transmits, and distributes natural gas, as well as owns municipal franchises to provide natural gas service in the communities. The company operates 6,600 miles of electric transmission and 18,674 miles of electric distribution lines with approximately 395 transmission and distribution substations; and 2,235 miles of natural gas transmission and 5,155 miles of natural gas distribution lines with approximately 133 city gate stations in Montana. It also operates 1,310 miles of electric transmission and 2,365 miles of electric distribution lines in South Dakota with approximately 124 transmission and distribution substations; and 55 miles of natural gas transmission and 2,573 miles of natural gas distribution lines in South Dakota and Nebraska. The company provides electricity and/or natural gas to approximately 775,300 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. NorthWestern Energy Group, Inc. was founded in 1923 and is based in Sioux Falls, South Dakota.