Regency Energy Partners (RGP) and Southern Company Gas (GAS) Financial Analysis

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

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. Regency Energy Partners has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Regency Energy Partners and Southern Company Gas, as provided by MarketBeat.com.

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

Profitability

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

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

Valuation and Earnings

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

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

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.

Summary

Southern Company Gas beats Regency Energy Partners on 6 of the 8 factors compared between the two stocks.

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.

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.

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