Southwest Gas Corporation (NYSE: SWX) is one of 17 publicly-traded companies in the “Natural Gas Distribution” industry, but how does it weigh in compared to its rivals? We will compare Southwest Gas Corporation to similar businesses based on the strength of its profitability, earnings, institutional ownership, risk, dividends, valuation and analyst recommendations.

Dividends

Southwest Gas Corporation pays an annual dividend of $1.98 per share and has a dividend yield of 2.5%. 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 2.5% and pay out 64.3% of their earnings in the form of a dividend. Southwest Gas Corporation has increased its dividend for 5 consecutive years. Southwest Gas Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Southwest Gas Corporation and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Southwest Gas Corporation $2.46 billion $152.04 million 23.55
Southwest Gas Corporation Competitors $1.99 billion $162.23 million 18.17

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

Profitability

This table compares Southwest Gas Corporation and its rivals’ 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 3.73% -3.53% 2.68%

Analyst Ratings

This is a summary of current ratings and target prices for Southwest Gas Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwest Gas Corporation 0 3 0 0 2.00
Southwest Gas Corporation Competitors 59 208 223 5 2.35

Southwest Gas Corporation currently has a consensus target price of $79.00, suggesting a potential downside of 1.35%. As a group, “Natural Gas Distribution” companies have a potential downside of 0.33%. Given Southwest Gas Corporation’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Southwest Gas Corporation has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

76.8% of Southwest Gas Corporation shares are held by institutional investors. Comparatively, 65.7% of shares of all “Natural Gas Distribution” companies are held by institutional investors. 1.0% of Southwest Gas Corporation shares are held by insiders. Comparatively, 2.2% of shares of all “Natural Gas Distribution” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Southwest Gas Corporation has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Southwest Gas Corporation’s rivals have a beta of 0.43, suggesting that their average share price is 57% less volatile than the S&P 500.

Summary

Southwest Gas Corporation beats its rivals on 9 of the 15 factors compared.

Southwest Gas Corporation Company Profile

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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