Critical Review: Southwest Gas Corporation (SWX) versus The Competition
Southwest Gas Corporation (NYSE: SWX) is one of 17 public companies in the “Natural Gas Distribution” industry, but how does it compare to its rivals? We will compare Southwest Gas Corporation to related businesses based on the strength of its institutional ownership, risk, earnings, analyst recommendations, valuation, profitability and dividends.
This is a breakdown of current ratings and target prices for Southwest Gas Corporation and its rivals, as provided 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||57||205||220||5||2.36|
Southwest Gas Corporation presently has a consensus price target of $79.00, suggesting a potential downside of 1.86%. As a group, “Natural Gas Distribution” companies have a potential upside of 2.45%. Given Southwest Gas Corporation’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Southwest Gas Corporation has less favorable growth aspects than its rivals.
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||6.46%||9.09%||2.73%|
|Southwest Gas Corporation Competitors||4.26%||-3.43%||2.73%|
Valuation & Earnings
This table compares Southwest Gas Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Southwest Gas Corporation||$2.46 billion||$152.04 million||24.85|
|Southwest Gas Corporation Competitors||$1.99 billion||$162.23 million||22.79|
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.
Risk & Volatility
Southwest Gas Corporation has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Southwest Gas Corporation’s rivals have a beta of 0.44, indicating that their average stock price is 56% less volatile than the S&P 500.
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 61.1% of its earnings in the form of a dividend. As a group, “Natural Gas Distribution” companies pay a dividend yield of 2.3% and pay out 60.1% of their earnings in the form of a dividend. Southwest Gas Corporation has increased its dividend for 5 consecutive years.
Insider and Institutional Ownership
76.7% of Southwest Gas Corporation shares are held by institutional investors. Comparatively, 65.6% of shares of all “Natural Gas Distribution” companies are held by institutional investors. 1.0% of Southwest Gas 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Southwest Gas Corporation rivals beat Southwest Gas Corporation on 8 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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