Comparing Southern Company Gas (GAS) & South Jersey Industries (SJI)
Southern Company Gas (NYSE: GAS) and South Jersey Industries (NYSE:SJI) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.
Insider & Institutional Ownership
69.5% of South Jersey Industries shares are owned by institutional investors. 0.6% of South Jersey Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Southern Company Gas has a beta of -0.08, indicating that its share price is 108% less volatile than the S&P 500. Comparatively, South Jersey Industries has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Southern Company Gas and South Jersey Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Southern Company Gas||0||0||0||0||N/A|
|South Jersey Industries||0||4||2||0||2.33|
South Jersey Industries has a consensus target price of $38.67, suggesting a potential upside of 12.86%. Given South Jersey Industries’ higher probable upside, analysts plainly believe South Jersey Industries is more favorable than Southern Company Gas.
South Jersey Industries pays an annual dividend of $1.09 per share and has a dividend yield of 3.2%. Southern Company Gas does not pay a dividend. South Jersey Industries pays out 101.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southern Company Gas has increased its dividend for 5 consecutive years.
Earnings & Valuation
This table compares Southern Company Gas and South Jersey Industries’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Southern Company Gas||N/A||N/A||N/A||N/A||N/A|
|South Jersey Industries||$1.22 billion||2.23||$261.72 million||$1.07||32.02|
South Jersey Industries has higher revenue and earnings than Southern Company Gas.
This table compares Southern Company Gas and South Jersey Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Southern Company Gas||6.84%||2.13%||0.90%|
|South Jersey Industries||7.02%||7.71%||2.68%|
South Jersey Industries beats Southern Company Gas on 10 of the 12 factors compared between the two stocks.
About Southern Company Gas
Southern Company Gas, formerly AGL Resources Inc, is a natural gas-only distribution company. The Company operates in four operating segments: distribution operations, retail operations, wholesale services and midstream operations. The Company’s distribution operations segment is engaged in providing natural gas to residential, commercial and industrial customers. The retail operations segment is involved in the provision of natural gas commodity and related services. The wholesale services segment is engaged in natural gas storage, gas pipeline arbitrage and provides natural gas asset management and related logistics services for its utilities, as well as for non-affiliated companies. Midstream operations segment consists primarily of natural gas storage facilities and select pipelines, enabling the provision of diverse sources of natural gas supplies to its customers.
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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