Just Energy Group (JE) versus Southwest Gas Corporation (SWX) Critical Comparison
Just Energy Group (NYSE: JE) and Southwest Gas Corporation (NYSE:SWX) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Volatility & Risk
Just Energy Group has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Southwest Gas Corporation has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.
Valuation & Earnings
This table compares Just Energy Group and Southwest Gas Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Just Energy Group||$2.96 billion||0.29||$167.04 million||$0.05||115.40|
|Southwest Gas Corporation||$2.40 billion||1.60||$568.17 million||$3.24||24.84|
Southwest Gas Corporation has higher revenue, but lower earnings than Just Energy Group. Southwest Gas Corporation is trading at a lower price-to-earnings ratio than Just Energy Group, indicating that it is currently the more affordable of the two stocks.
This table compares Just Energy Group and Southwest Gas Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Just Energy Group||2.18%||-117.41%||18.57%|
|Southwest Gas Corporation||6.46%||9.09%||2.73%|
Institutional and Insider Ownership
29.2% of Just Energy Group shares are held by institutional investors. Comparatively, 76.8% of Southwest Gas Corporation shares are held by institutional investors. 1.0% of Southwest Gas Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Just Energy Group pays an annual dividend of $0.40 per share and has a dividend yield of 6.9%. Southwest Gas Corporation pays an annual dividend of $1.98 per share and has a dividend yield of 2.5%. Just Energy Group pays out 800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.
This is a summary of current recommendations and price targets for Just Energy Group and Southwest Gas Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Just Energy Group||0||2||3||0||2.60|
|Southwest Gas Corporation||0||3||0||0||2.00|
Just Energy Group presently has a consensus price target of $8.80, indicating a potential upside of 52.51%. Southwest Gas Corporation has a consensus price target of $79.00, indicating a potential downside of 1.84%. Given Just Energy Group’s stronger consensus rating and higher probable upside, analysts clearly believe Just Energy Group is more favorable than Southwest Gas Corporation.
Southwest Gas Corporation beats Just Energy Group on 10 of the 17 factors compared between the two stocks.
Just Energy Group Company Profile
Just Energy Group Inc. (Just Energy) is an energy management solutions provider engaged in electricity, natural gas, solar and green energy. The Company’s segments include Consumer Energy and Commercial Energy. The Company operates in the United States, Canada and the United Kingdom, offering a range of energy products, including long-term fixed-price, variable rate and flat bill programs; home energy management services, including smart thermostats and tools to manage energy use at the appliance level, and residential solar panel installations. It markets under the brands, such as Just Energy, Hudson Energy, Amigo Energy, GreenStar Energy, Just Solar, Tara Energy and TerraPass. Just Energy’s commercial business is operated primarily through Hudson Energy. Hudson Energy offers fixed and variable rate natural gas and electricity contracts, as well as customized products. Just Energy also offers green products through its JustGreen Electricity and Natural Gas and TerraPass programs.
Southwest Gas Corporation Company Profile
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.
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