NewJersey Resources Corporation (NYSE: NJR) is one of 17 public companies in the “Natural Gas Distribution” industry, but how does it contrast to its competitors? We will compare NewJersey Resources Corporation to similar businesses based on the strength of its dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NewJersey Resources Corporation and its competitors, as provided 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 57 205 220 5 2.36

NewJersey Resources Corporation currently has a consensus price target of $41.00, indicating a potential downside of 6.92%. As a group, “Natural Gas Distribution” companies have a potential downside of 1.35%. Given NewJersey Resources Corporation’s competitors stronger consensus rating and higher probable upside, analysts clearly believe NewJersey Resources Corporation has less favorable growth aspects than its competitors.

Profitability

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 4.26% -3.43% 2.73%

Dividends

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 2.3% and pay out 62.6% of their earnings in the form of a dividend. NewJersey Resources Corporation has increased 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.

Institutional & Insider Ownership

64.2% of NewJersey Resources Corporation shares are held by institutional investors. Comparatively, 65.6% of shares of all “Natural Gas Distribution” companies are held by institutional investors. 1.5% of NewJersey Resources 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

NewJersey Resources Corporation has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, NewJersey Resources Corporation’s competitors have a beta of 0.43, suggesting that their average stock price is 57% less volatile than the S&P 500.

Valuation and Earnings

This table compares NewJersey Resources Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
NewJersey Resources Corporation $1.88 billion $131.67 million 19.75
NewJersey Resources Corporation Competitors $1.99 billion $162.23 million 25.74

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.

Summary

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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