Southern Company Gas (NYSE: GAS) and Regency Energy Partners (NYSE:RGP) are both mid-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Dividends

Southern Company Gas pays an annual dividend of $2.12 per share and has a dividend yield of 3.2%. Regency Energy Partners does not pay a dividend. Southern Company Gas pays out 74.6% of its earnings in the form of a dividend. Southern Company Gas has raised its dividend for 6 consecutive years and Regency Energy Partners has raised its dividend for 5 consecutive years.

Profitability

This table compares Southern Company Gas and Regency Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southern Company Gas 2.65% 0.65% 0.27%
Regency Energy Partners -0.30% -0.47% -0.07%

Valuation and Earnings

This table compares Southern Company Gas and Regency Energy Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Southern Company Gas N/A N/A N/A $2.84 23.23
Regency Energy Partners N/A N/A N/A ($0.57) -41.18

Regency Energy Partners is trading at a lower price-to-earnings ratio than Southern Company Gas, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Southern Company Gas and Regency Energy Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southern Company Gas 0 0 0 0 N/A
Regency Energy Partners 0 0 0 0 N/A

Summary

Southern Company Gas beats Regency Energy Partners on 7 of the 8 factors compared between the two stocks.

Southern Company Gas Company Profile

Southern Company Gas, formerly AGL Resources Inc, is a natural gas-only distribution company. The Company operates in four operating segments: distribution operations, retail operations, wholesale services and midstream operations. The Company’s distribution operations segment is engaged in providing natural gas to residential, commercial and industrial customers. The retail operations segment is involved in the provision of natural gas commodity and related services. The wholesale services segment is engaged in natural gas storage, gas pipeline arbitrage and provides natural gas asset management and related logistics services for its utilities, as well as for non-affiliated companies. Midstream operations segment consists primarily of natural gas storage facilities and select pipelines, enabling the provision of diverse sources of natural gas supplies to its customers.

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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