NewJersey Resources Corporation (NJR) versus Its Competitors Financial Contrast
NewJersey Resources Corporation (NYSE: NJR) is one of 17 publicly-traded companies in the “Natural Gas Distribution” industry, but how does it weigh in compared to its peers? We will compare NewJersey Resources Corporation to similar businesses based on the strength of its profitability, valuation, risk, earnings, institutional ownership, analyst recommendations and dividends.
This is a breakdown of current ratings for NewJersey Resources Corporation and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NewJersey Resources Corporation||1||1||1||0||2.00|
|NewJersey Resources Corporation Competitors||59||208||223||5||2.35|
NewJersey Resources Corporation currently has a consensus price target of $41.00, suggesting a potential downside of 6.39%. As a group, “Natural Gas Distribution” companies have a potential upside of 0.12%. Given NewJersey Resources Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe NewJersey Resources Corporation has less favorable growth aspects than its peers.
Volatility & Risk
NewJersey Resources Corporation has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, NewJersey Resources Corporation’s peers have a beta of 0.42, meaning that their average stock price is 58% less volatile than the S&P 500.
NewJersey Resources Corporation pays an annual dividend of $1.09 per share and has a dividend yield of 2.5%. NewJersey Resources Corporation pays out 48.9% of its earnings in the form of a dividend. As a group, “Natural Gas Distribution” companies pay a dividend yield of 2.5% and pay out 62.3% of their earnings in the form of a dividend. NewJersey Resources Corporation has raised its dividend for 21 consecutive years. NewJersey Resources Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
64.2% of NewJersey Resources Corporation shares are held by institutional investors. Comparatively, 65.7% of shares of all “Natural Gas Distribution” companies are held by institutional investors. 1.5% of NewJersey Resources Corporation 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares NewJersey Resources Corporation and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|NewJersey Resources Corporation||$1.88 billion||$131.67 million||19.64|
|NewJersey Resources Corporation Competitors||$2.04 billion||$162.23 million||17.52|
NewJersey Resources Corporation’s peers have higher revenue and earnings than NewJersey Resources Corporation. NewJersey Resources Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This table compares NewJersey Resources Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NewJersey Resources Corporation||8.81%||12.77%||4.10%|
|NewJersey Resources Corporation Competitors||3.66%||-9.28%||2.80%|
NewJersey Resources Corporation peers beat NewJersey Resources Corporation on 8 of the 15 factors compared.
NewJersey Resources Corporation Company Profile
New Jersey Resources Corporation is an energy services holding company. The Company’s business is the distribution of natural gas through a regulated utility, which provides other retail and wholesale energy services to customers and investing in clean energy projects and midstream assets. It operates in four business segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services and Midstream. The Natural Gas Distribution segment consists of regulated natural gas services, off-system sales, capacity and storage management operations. The Energy Services segment consists of unregulated wholesale energy operations. The Clean Energy Ventures segment consists of capital investments in clean energy projects. The Midstream segment consists of investments in the midstream natural gas market, such as natural gas transportation and storage facilities. The Home Services and Other operations consist of heating, cooling and water appliance sales and installations, among others.
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