NewJersey Resources Corporation (NYSE: NJR) and Regency Energy Partners (NYSE:RGP) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Dividends

NewJersey Resources Corporation pays an annual dividend of $1.02 per share and has a dividend yield of 2.4%. Regency Energy Partners does not pay a dividend. NewJersey Resources Corporation pays out 45.7% of its earnings in the form of a dividend. NewJersey Resources Corporation has raised its dividend for 21 consecutive years and Regency Energy Partners has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for NewJersey Resources Corporation and Regency Energy Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NewJersey Resources Corporation 1 1 2 0 2.25
Regency Energy Partners 0 0 0 0 N/A

NewJersey Resources Corporation currently has a consensus price target of $39.75, indicating a potential downside of 6.91%. Given NewJersey Resources Corporation’s higher probable upside, equities research analysts plainly believe NewJersey Resources Corporation is more favorable than Regency Energy Partners.

Institutional & Insider Ownership

64.2% of NewJersey Resources Corporation shares are held by institutional investors. 1.5% of NewJersey Resources Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares NewJersey Resources Corporation and Regency Energy Partners’ 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%
Regency Energy Partners -0.30% -0.47% -0.07%

Valuation and Earnings

This table compares NewJersey Resources Corporation and Regency Energy Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NewJersey Resources Corporation $2.20 billion 1.68 $321.77 million $2.23 19.15
Regency Energy Partners N/A N/A N/A N/A N/A

NewJersey Resources Corporation has higher revenue and earnings than Regency Energy Partners.

Summary

NewJersey Resources Corporation beats Regency Energy Partners on 10 of the 11 factors compared between the two stocks.

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.

Regency Energy Partners Company Profile

Regency Energy Partners LP gathers and processes, compress, treats and transports natural gas; transports, fractionates and stores natural gas liquids (NGLs); gathers, transports and terminals oil received from producers; gathers and disposes salt water, and manages coal and natural resource properties in the United States. The Company has six business segments: Gathering and Processing, Natural Gas Transportation, NGL Services, Contract Services, Natural Resources and Corporate. The Gathering and Processing segment provides wellhead-to-market services to producers of natural gas. The Natural Gas Transportation segment owns a 49.99% general partner interest in RIGS Haynesville Partnership Co. The NGL Services segment owns a 30% membership interest in Lone Star NGL LLC. The Contract Services segment owns and operates a fleet of compressors. The Natural Resources segment manages coal and natural resources properties. The Corporate segment includes its corporate assets.

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