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

Valuation & Earnings

This table compares Southwest Gas Corporation and Just Energy Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Southwest Gas Corporation $2.40 billion 1.53 $568.17 million $3.24 23.88
Just Energy Group $2.96 billion 0.27 $167.04 million $0.05 110.80

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.

Risk & Volatility

Southwest Gas Corporation has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Just Energy Group has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Southwest Gas Corporation and Just Energy Group, 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
Just Energy Group 0 2 3 0 2.60

Southwest Gas Corporation presently has a consensus target price of $79.00, suggesting a potential upside of 2.11%. Just Energy Group has a consensus target price of $8.80, suggesting a potential upside of 58.84%. Given Just Energy Group’s stronger consensus rating and higher possible upside, analysts plainly believe Just Energy Group is more favorable than Southwest Gas Corporation.

Profitability

This table compares Southwest Gas Corporation and Just Energy Group’s 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%
Just Energy Group 2.18% -117.41% 18.57%

Institutional and Insider Ownership

76.8% of Southwest Gas Corporation shares are owned by institutional investors. Comparatively, 29.2% of Just Energy Group shares are owned by institutional investors. 1.0% of Southwest Gas Corporation shares are owned 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.

Dividends

Southwest Gas Corporation pays an annual dividend of $1.98 per share and has a dividend yield of 2.6%. Just Energy Group pays an annual dividend of $0.40 per share and has a dividend yield of 7.2%. Southwest Gas Corporation pays out 61.1% of its earnings in the form of a dividend. 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. Just Energy Group has raised its dividend for 5 consecutive years. Just Energy Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Southwest Gas Corporation beats Just Energy Group on 9 of the 17 factors compared between the two stocks.

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.

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.

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