WallStSmart

Black Hills Corporation (BKH)vsNorthwest Natural Gas Co (NWN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Black Hills Corporation generates 79% more annual revenue ($2.31B vs $1.29B). BKH leads profitability with a 12.6% profit margin vs 8.8%. BKH appears more attractively valued with a PEG of 2.73. NWN earns a higher WallStSmart Score of 64/100 (C+).

BKH

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 5.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.92

NWN

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 6.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.72
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BKHUndervalued (+16.7%)

Margin of Safety

+16.7%

Fair Value

$87.12

Current Price

$74.31

$12.81 discount

UndervaluedFair: $87.12Overvalued
NWNUndervalued (+32.4%)

Margin of Safety

+32.4%

Fair Value

$72.25

Current Price

$53.12

$19.13 discount

UndervaluedFair: $72.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BKH2 strengths · Avg: 9.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
26.2%8/10

Strong operational efficiency at 26.2%

NWN3 strengths · Avg: 8.7/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
25.4%8/10

Strong operational efficiency at 25.4%

EPS GrowthGrowth
24.1%8/10

Earnings expanding 24.1% YoY

Areas to Watch

BKH4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.9%4/10

0.9% earnings growth

PEG RatioValuation
2.732/10

Expensive relative to growth rate

Free Cash FlowQuality
$-101.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

NWN4 concerns · Avg: 2.5/10
Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Debt/EquityHealth
1.763/10

Elevated debt levels

PEG RatioValuation
2.812/10

Expensive relative to growth rate

Free Cash FlowQuality
$-130.97M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : BKH

The strongest argument for BKH centers on Price/Book, Operating Margin.

Bull Case : NWN

The strongest argument for NWN centers on Price/Book, Operating Margin, EPS Growth.

Bear Case : BKH

The primary concerns for BKH are EPS Growth, PEG Ratio, Free Cash Flow.

Bear Case : NWN

The primary concerns for NWN are Return on Equity, Debt/Equity, PEG Ratio. Debt-to-equity of 1.76 is elevated, increasing financial risk.

Key Dynamics to Monitor

BKH carries more volatility with a beta of 0.71 — expect wider price swings.

BKH is growing revenue faster at 6.4% — sustainability is the question.

BKH generates stronger free cash flow (-102M), providing more financial flexibility.

Monitor UTILITIES - REGULATED GAS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NWN scores higher overall (64/100 vs 57/100). BKH offers better value entry with a 16.7% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Black Hills Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

Black Hills Corporation is a natural gas and electric utility company in the United States. The company is headquartered in Rapid City, South Dakota.

Northwest Natural Gas Co

UTILITIES · UTILITIES - REGULATED GAS · USA

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial and transportation customers in Oregon and Southwest Washington. The company is headquartered in Portland, Oregon.

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