Southwest Gas Corporation (NYSE: SWX) is one of 14 public companies in the “Natural Gas Distribution” industry, but how does it contrast to its rivals? We will compare Southwest Gas Corporation to related companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Dividends

Southwest Gas Corporation pays an annual dividend of $1.98 per share and has a dividend yield of 2.4%. Southwest Gas Corporation pays out 58.2% of its earnings in the form of a dividend. As a group, “Natural Gas Distribution” companies pay a dividend yield of 2.4% and pay out 62.3% of their earnings in the form of a dividend. Southwest Gas Corporation has raised its dividend for 5 consecutive years.

Volatility and Risk

Southwest Gas Corporation has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Southwest Gas Corporation’s rivals have a beta of 0.48, indicating that their average stock price is 53% less volatile than the S&P 500.

Insider & Institutional Ownership

75.7% of Southwest Gas Corporation shares are owned by institutional investors. Comparatively, 65.4% of shares of all “Natural Gas Distribution” companies are owned by institutional investors. 1.0% of Southwest Gas Corporation shares are owned by insiders. Comparatively, 2.2% of shares of all “Natural Gas Distribution” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Southwest Gas Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southwest Gas Corporation 6.64% 9.56% 2.87%
Southwest Gas Corporation Competitors 4.59% -11.08% 3.67%

Earnings and Valuation

This table compares Southwest Gas Corporation and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Southwest Gas Corporation $2.46 billion $152.04 million 24.32
Southwest Gas Corporation Competitors $2.04 billion $171.22 million 22.69

Southwest Gas Corporation has higher revenue, but lower earnings than its rivals. Southwest Gas Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Southwest Gas Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwest Gas Corporation 0 3 0 0 2.00
Southwest Gas Corporation Competitors 59 210 227 5 2.36

Southwest Gas Corporation currently has a consensus target price of $79.00, suggesting a potential downside of 4.46%. As a group, “Natural Gas Distribution” companies have a potential downside of 1.58%. Given Southwest Gas Corporation’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Southwest Gas Corporation has less favorable growth aspects than its rivals.

Summary

Southwest Gas Corporation rivals beat Southwest Gas Corporation on 8 of the 15 factors compared.

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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