Black Hills Corporation (BKH)vsSouthwest Gas Holdings Inc (SWX)
BKH
Black Hills Corporation
$68.85
+0.44%
UTILITIES · Cap: $5.24B
SWX
Southwest Gas Holdings Inc
$85.82
-0.61%
UTILITIES · Cap: $6.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Black Hills Corporation generates 19% more annual revenue ($2.31B vs $1.94B). SWX leads profitability with a 22.7% profit margin vs 12.6%. SWX appears more attractively valued with a PEG of 2.15. SWX earns a higher WallStSmart Score of 57/100 (C).
BKH
Buy57
out of 100
Grade: C
SWX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-120.3%
Fair Value
$32.96
Current Price
$68.85
$35.89 premium
Margin of Safety
-289.0%
Fair Value
$22.10
Current Price
$85.82
$63.72 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Strong operational efficiency at 26.2%
Strong operational efficiency at 33.9%
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
0.9% earnings growth
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
ROE of 6.1% — below average capital efficiency
Revenue declined 13.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : BKH
The strongest argument for BKH centers on Price/Book, P/E Ratio, Operating Margin.
Bull Case : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 22.7% and operating margin at 33.9%.
Bear Case : BKH
The primary concerns for BKH are PEG Ratio, EPS Growth, Free Cash Flow.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
BKH profiles as a value stock while SWX is a declining play — different risk/reward profiles.
BKH carries more volatility with a beta of 0.70 — 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.
Bottom Line
BKH scores higher overall (57/100 vs 57/100). 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.
Southwest Gas Holdings Inc
UTILITIES · UTILITIES - REGULATED GAS · USA
Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.
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