NewJersey Resources Corporation (NJR) & Its Rivals Critical Analysis
NewJersey Resources Corporation (NYSE: NJR) is one of 17 publicly-traded companies in the “Natural Gas Distribution” industry, but how does it compare to its competitors? We will compare NewJersey Resources Corporation to related businesses based on the strength of its earnings, risk, analyst recommendations, profitability, dividends, institutional ownership and valuation.
This table compares NewJersey Resources Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NewJersey Resources Corporation||8.81%||12.77%||4.10%|
|NewJersey Resources Corporation Competitors||3.73%||-3.53%||2.68%|
This is a breakdown of current ratings for NewJersey Resources Corporation and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NewJersey Resources Corporation||1||1||1||0||2.00|
|NewJersey Resources Corporation Competitors||58||206||223||5||2.36|
NewJersey Resources Corporation presently has a consensus target price of $41.00, indicating a potential downside of 6.71%. As a group, “Natural Gas Distribution” companies have a potential downside of 0.86%. Given NewJersey Resources Corporation’s competitors stronger consensus rating and higher probable upside, analysts plainly believe NewJersey Resources Corporation has less favorable growth aspects than its competitors.
NewJersey Resources Corporation pays an annual dividend of $1.09 per share and has a dividend yield of 2.5%. NewJersey Resources Corporation pays out 48.9% 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 65.3% of their earnings in the form of a dividend. NewJersey Resources Corporation has raised its dividend for 21 consecutive years. NewJersey Resources Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Risk & Volatility
NewJersey Resources Corporation has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, NewJersey Resources Corporation’s competitors have a beta of 0.42, meaning that their average share price is 58% less volatile than the S&P 500.
Institutional & Insider Ownership
64.2% of NewJersey Resources Corporation shares are held by institutional investors. Comparatively, 65.7% of shares of all “Natural Gas Distribution” companies are held by institutional investors. 1.5% of NewJersey Resources 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares NewJersey Resources Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|NewJersey Resources Corporation||$1.88 billion||$131.67 million||19.71|
|NewJersey Resources Corporation Competitors||$1.99 billion||$162.23 million||25.02|
NewJersey Resources Corporation’s competitors have higher revenue and earnings than NewJersey Resources Corporation. NewJersey Resources Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
NewJersey Resources Corporation competitors beat NewJersey Resources Corporation on 9 of the 15 factors compared.
NewJersey Resources Corporation Company Profile
New Jersey Resources Corporation is an energy services holding company. The Company’s business is the distribution of natural gas through a regulated utility, which provides other retail and wholesale energy services to customers and investing in clean energy projects and midstream assets. It operates in four business segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services and Midstream. The Natural Gas Distribution segment consists of regulated natural gas services, off-system sales, capacity and storage management operations. The Energy Services segment consists of unregulated wholesale energy operations. The Clean Energy Ventures segment consists of capital investments in clean energy projects. The Midstream segment consists of investments in the midstream natural gas market, such as natural gas transportation and storage facilities. The Home Services and Other operations consist of heating, cooling and water appliance sales and installations, among others.
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