Superior Plus (OTCMKTS:SUUIF) vs. Southwest Gas (NYSE:SWX) Critical Review

Superior Plus (OTCMKTS:SUUIF) and Southwest Gas (NYSE:SWX) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Dividends

Superior Plus pays an annual dividend of $0.60 per share and has a dividend yield of 11.2%. Southwest Gas pays an annual dividend of $2.58 per share and has a dividend yield of 2.8%. Superior Plus pays out 312.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southwest Gas pays out 33.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

27.9% of Superior Plus shares are held by institutional investors. Comparatively, 92.8% of Southwest Gas shares are held by institutional investors. 0.6% of Southwest Gas shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Superior Plus and Southwest Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Superior Plus	N/A	N/A	N/A
Southwest Gas	31.85%	6.91%	2.64%

Valuation & Earnings

This table compares Superior Plus and Southwest Gas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Superior Plus	N/A	N/A	N/A	$0.19	27.89
Southwest Gas	$1.94 billion	3.43	$439.83 million	$7.66	11.99

Southwest Gas has higher revenue and earnings than Superior Plus. Southwest Gas is trading at a lower price-to-earnings ratio than Superior Plus, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Superior Plus and Southwest Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Superior Plus	0	6	1	0	2.14
Southwest Gas	0	1	7	0	2.88

Southwest Gas has a consensus price target of $98.29, suggesting a potential upside of 7.04%. Given Southwest Gas’ stronger consensus rating and higher probable upside, analysts clearly believe Southwest Gas is more favorable than Superior Plus.

Summary

Southwest Gas beats Superior Plus on 11 of the 13 factors compared between the two stocks.

About Superior Plus

Superior Plus Corp. distributes and markets propane, compressed natural gas and renewable energy in both the United States and Canada. The company operates through The United States Retail Propane Distribution (U.S. Propane), Canadian Retail Propane Distribution (Canadian Propane), and North American Wholesale Propane Distribution (Wholesale Propane), and Certarus segments. The U.S. Propane Distribution segment distributes propane gas and liquid fuels primarily in the Eastern United States, the Midwest, and California to retail customers, including residential and commercial customers. The Canadian Propane segment distributes propane gas and liquid fuels across Canada to retail customers, including residential and commercial customers. The Wholesale Propane segment supplies propane gas for the Canadian Propane and the U.S. Propane segments, as well as propane and other natural gas liquids to third-party wholesale customers in Canada and the United States. The Certarus segment provides low-carbon energy solution for transporting, compressed natural gas, renewable natural gas, and hydrogen. Superior Plus Corp. was incorporated in 1989 and is based in Toronto, Canada.

About Southwest Gas

Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2023, it had 2,226,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.