Southwest Gas Corporation (NYSE: SWX) and Regency Energy Partners (NYSE:RGP) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and price targets for Southwest Gas Corporation and Regency Energy Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwest Gas Corporation 0 3 0 0 2.00
Regency Energy Partners 0 0 0 0 N/A

Southwest Gas Corporation currently has a consensus target price of $79.00, suggesting a potential downside of 1.56%. Given Southwest Gas Corporation’s higher probable upside, analysts clearly believe Southwest Gas Corporation is more favorable than Regency Energy Partners.

Earnings & Valuation

This table compares Southwest Gas Corporation and Regency Energy Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Southwest Gas Corporation $2.40 billion 1.59 $568.17 million $3.24 24.77
Regency Energy Partners N/A N/A N/A N/A N/A

Southwest Gas Corporation has higher revenue and earnings than Regency Energy Partners.

Dividends

Southwest Gas Corporation pays an annual dividend of $1.98 per share and has a dividend yield of 2.5%. Regency Energy Partners does not pay a dividend. Southwest Gas Corporation pays out 61.1% of its earnings in the form of a dividend. Southwest Gas Corporation has increased its dividend for 5 consecutive years and Regency Energy Partners has increased its dividend for 6 consecutive years.

Insider and Institutional Ownership

78.6% of Southwest Gas Corporation shares are owned by institutional investors. 1.3% of Southwest Gas Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Southwest Gas Corporation and Regency Energy Partners’ 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%
Regency Energy Partners -0.30% -0.47% -0.07%

Summary

Southwest Gas Corporation beats Regency Energy Partners on 8 of the 10 factors compared between the two stocks.

About Southwest Gas Corporation

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.

About Regency Energy Partners

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.

Receive News & Stock Ratings for Southwest Gas Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Southwest Gas Corporation and related stocks with our FREE daily email newsletter.