South Jersey Industries (NYSE: SJI) is one of 17 public companies in the “Natural Gas Distribution” industry, but how does it compare to its competitors? We will compare South Jersey Industries to related businesses based on the strength of its dividends, institutional ownership, risk, earnings, analyst recommendations, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for South Jersey Industries and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
South Jersey Industries 0 4 3 0 2.43
South Jersey Industries Competitors 57 205 220 5 2.36

South Jersey Industries currently has a consensus price target of $38.00, indicating a potential upside of 18.01%. As a group, “Natural Gas Distribution” companies have a potential downside of 3.32%. Given South Jersey Industries’ stronger consensus rating and higher probable upside, analysts clearly believe South Jersey Industries is more favorable than its competitors.

Earnings & Valuation

This table compares South Jersey Industries and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
South Jersey Industries $1.04 billion $118.81 million 67.08
South Jersey Industries Competitors $1.99 billion $162.23 million 18.69

South Jersey Industries’ competitors have higher revenue and earnings than South Jersey Industries. South Jersey Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

69.9% of South Jersey Industries shares are held by institutional investors. Comparatively, 65.7% of shares of all “Natural Gas Distribution” companies are held by institutional investors. 0.6% of South Jersey Industries shares are held by company insiders. Comparatively, 2.2% of shares of all “Natural Gas Distribution” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

South Jersey Industries pays an annual dividend of $1.09 per share and has a dividend yield of 3.4%. South Jersey Industries pays out 227.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Natural Gas Distribution” companies pay a dividend yield of 2.3% and pay out 61.3% of their earnings in the form of a dividend.

Profitability

This table compares South Jersey Industries and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
South Jersey Industries 3.13% 7.06% 2.44%
South Jersey Industries Competitors 3.72% -3.57% 2.67%

Risk and Volatility

South Jersey Industries has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, South Jersey Industries’ competitors have a beta of 0.43, meaning that their average stock price is 57% less volatile than the S&P 500.

Summary

South Jersey Industries competitors beat South Jersey Industries on 8 of the 15 factors compared.

About South Jersey Industries

South Jersey Industries, Inc. (SJI) is an energy services holding company. The Company provides a range of energy-related products and services, primarily through its subsidiaries. Its subsidiaries include South Jersey Gas Company (SJG), South Jersey Energy Company (SJE), South Jersey Resources Group, LLC (SJRG), South Jersey Exploration, LLC (SJEX), Marina Energy, LLC (Marina), South Jersey Energy Service Plus, LLC (SJESP) and SJI Midstream, LLC (Midstream). Its segments include Gas utility operations (SJG), which consist primarily of natural gas distribution; Wholesale energy operations, which include the activities of SJRG and SJEX; SJE, which is involved in both retail gas and retail electric activities; On-Site energy production, which consists of Marina’s thermal energy facility; Appliance service operations, which include SJESP, and Corporate and Services segment, which includes the activities of Midstream.

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