Critical Survey: Southern Company Gas (GAS) & Just Energy Group (JE)
Southern Company Gas (NYSE: GAS) and Just Energy Group (NYSE:JE) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitabiliy, valuation, institutional ownership and earnings.
Valuation and Earnings
This table compares Southern Company Gas and Just Energy Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Southern Company Gas||N/A||N/A||N/A||N/A||N/A|
|Just Energy Group||$2.79 billion||0.28||$173.50 million||$1.57||3.34|
Just Energy Group has higher revenue and earnings than Southern Company Gas.
Volatility and Risk
Southern Company Gas has a beta of -0.08, indicating that its stock price is 108% less volatile than the S&P 500. Comparatively, Just Energy Group has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Southern Company Gas and Just Energy Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Southern Company Gas||0||1||0||0||2.00|
|Just Energy Group||0||2||3||0||2.60|
Just Energy Group has a consensus target price of $8.80, suggesting a potential upside of 67.62%. Given Just Energy Group’s stronger consensus rating and higher probable upside, analysts clearly believe Just Energy Group is more favorable than Southern Company Gas.
This table compares Southern Company Gas and Just Energy Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Southern Company Gas||15.32%||10.45%||4.40%|
|Just Energy Group||12.37%||-84.39%||15.43%|
Institutional & Insider Ownership
29.1% of Just Energy Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Just Energy Group pays an annual dividend of $0.37 per share and has a dividend yield of 7.0%. Southern Company Gas does not pay a dividend. Just Energy Group pays out 23.6% of its earnings in the form of a dividend. Southern Company Gas has raised its dividend for 5 consecutive years.
Just Energy Group beats Southern Company Gas on 8 of the 12 factors compared between the two stocks.
Southern Company Gas Company Profile
Southern Company Gas, formerly AGL Resources Inc, is a natural gas-only distribution company. The Company operates in four operating segments: distribution operations, retail operations, wholesale services and midstream operations. The Company’s distribution operations segment is engaged in providing natural gas to residential, commercial and industrial customers. The retail operations segment is involved in the provision of natural gas commodity and related services. The wholesale services segment is engaged in natural gas storage, gas pipeline arbitrage and provides natural gas asset management and related logistics services for its utilities, as well as for non-affiliated companies. Midstream operations segment consists primarily of natural gas storage facilities and select pipelines, enabling the provision of diverse sources of natural gas supplies to its customers.
Just Energy Group Company Profile
Just Energy Group Inc. (Just Energy) is an energy management solutions provider engaged in electricity, natural gas, solar and green energy. The Company’s segments include Consumer Energy and Commercial Energy. The Company operates in the United States, Canada and the United Kingdom, offering a range of energy products, including long-term fixed-price, variable rate and flat bill programs; home energy management services, including smart thermostats and tools to manage energy use at the appliance level, and residential solar panel installations. It markets under the brands, such as Just Energy, Hudson Energy, Amigo Energy, GreenStar Energy, Just Solar, Tara Energy and TerraPass. Just Energy’s commercial business is operated primarily through Hudson Energy. Hudson Energy offers fixed and variable rate natural gas and electricity contracts, as well as customized products. Just Energy also offers green products through its JustGreen Electricity and Natural Gas and TerraPass programs.
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