Comparing NiSource (NYSE:NI) and Centuri (NYSE:CTRI)

NiSource (NYSE:NI) and Centuri (NYSE:CTRI) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

91.6% of NiSource shares are held by institutional investors. 0.2% of NiSource shares are held by company insiders. Comparatively, 0.2% of Centuri shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

NiSource has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Centuri has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NiSource and Centuri, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NiSource	0	2	9	0	2.82
Centuri	2	1	3	0	2.17

NiSource currently has a consensus price target of $47.11, indicating a potential upside of 6.73%. Centuri has a consensus price target of $26.40, indicating a potential downside of 8.81%. Given NiSource’s stronger consensus rating and higher possible upside, research analysts plainly believe NiSource is more favorable than Centuri.

Profitability

This table compares NiSource and Centuri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NiSource	14.15%	8.09%	2.66%
Centuri	0.09%	6.37%	1.71%

Valuation and Earnings

This table compares NiSource and Centuri”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NiSource	$5.46 billion	3.86	$760.40 million	$1.89	23.35
Centuri	$2.64 billion	1.09	-$6.72 million	$0.03	965.00

NiSource has higher revenue and earnings than Centuri. NiSource is trading at a lower price-to-earnings ratio than Centuri, indicating that it is currently the more affordable of the two stocks.

Summary

NiSource beats Centuri on 12 of the 14 factors compared between the two stocks.

About NiSource

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.