Tokyo Gas Co.,Ltd. (OTCMKTS:TKGSY) & Southwest Gas (NYSE:SWX) Head to Head Review

Tokyo Gas Co.,Ltd. (OTCMKTS:TKGSY) and Southwest Gas (NYSE:SWX) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent ratings for Tokyo Gas Co.,Ltd. and Southwest Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Gas Co.,Ltd.	0	0	0	0	0.00
Southwest Gas	0	1	6	1	3.00

Southwest Gas has a consensus price target of $98.29, indicating a potential upside of 7.39%. Given Southwest Gas’ stronger consensus rating and higher possible upside, analysts clearly believe Southwest Gas is more favorable than Tokyo Gas Co.,Ltd..

Institutional & Insider Ownership

0.1% of Tokyo Gas Co.,Ltd. shares are held by institutional investors. Comparatively, 92.8% of Southwest Gas shares are held by institutional investors. 0.6% of Southwest Gas shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Tokyo Gas Co.,Ltd. and Southwest Gas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Gas Co.,Ltd.	N/A	N/A	N/A	$197.62	0.09
Southwest Gas	$1.94 billion	3.42	$439.83 million	$7.66	11.95

Southwest Gas has higher revenue and earnings than Tokyo Gas Co.,Ltd.. Tokyo Gas Co.,Ltd. is trading at a lower price-to-earnings ratio than Southwest Gas, indicating that it is currently the more affordable of the two stocks.

Dividends

Tokyo Gas Co.,Ltd. pays an annual dividend of $0.22 per share and has a dividend yield of 1.2%. Southwest Gas pays an annual dividend of $2.58 per share and has a dividend yield of 2.8%. Tokyo Gas Co.,Ltd. pays out 0.1% of its earnings in the form of a dividend. Southwest Gas pays out 33.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Tokyo Gas Co.,Ltd. and Southwest Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Gas Co.,Ltd.	N/A	N/A	N/A
Southwest Gas	31.85%	6.91%	2.64%

Summary

Southwest Gas beats Tokyo Gas Co.,Ltd. on 12 of the 14 factors compared between the two stocks.

About Tokyo Gas Co.,Ltd.

Tokyo Gas Co.,Ltd. engages in the production, supply, and sale of city gas, and LNG in Japan. The company offers engineering solutions; gas construction; and gas pipelines services, as well as engages in gas appliances business. It is also involved in fuel procurement, power generation, and sales of electricity; and overseas resource development, renewable energy, and LNG infrastructure business. In addition, the company provides district heating and cooling, and energy services; and develops LNG terminals and pipes. Further, it engages in the real estate development activities; and leasing and management of land and buildings. The company was formerly known as Tokyo Gas Company and changed its name to Tokyo Gas Co.,Ltd. in July 1893. The company was incorporated in 1885 and is headquartered in Tokyo, Japan.

About Southwest Gas

Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2023, it had 2,226,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.