Black Hills Corporation (BKH)vsSouthwest Gas Holdings Inc (SWX)
BKH
Black Hills Corporation
$73.44
-2.38%
UTILITIES · Cap: $5.59B
SWX
Southwest Gas Holdings Inc
$89.13
-0.91%
UTILITIES · Cap: $6.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Black Hills Corporation generates 28% more annual revenue ($2.29B vs $1.78B). SWX leads profitability with a 26.1% profit margin vs 12.6%. SWX appears more attractively valued with a PEG of 2.20. SWX earns a higher WallStSmart Score of 65/100 (B-).
BKH
Buy51
out of 100
Grade: C-
SWX
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.5%
Fair Value
$85.94
Current Price
$73.44
$12.50 discount
Margin of Safety
-29.1%
Fair Value
$66.62
Current Price
$89.13
$22.51 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 25.9%
Strong operational efficiency at 37.9%
Keeps 26 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 20.9% YoY
Areas to Watch
ROE of 7.7% — below average capital efficiency
Expensive relative to growth rate
Revenue declined 3.0%
Earnings declined 7.5%
Expensive relative to growth rate
Moderate valuation
ROE of 6.1% — below average capital efficiency
Revenue declined 21.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : BKH
The strongest argument for BKH centers on Price/Book, Operating Margin.
Bull Case : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 26.1% and operating margin at 37.9%.
Bear Case : BKH
The primary concerns for BKH are Return on Equity, PEG Ratio, Revenue Growth.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
BKH carries more volatility with a beta of 0.72 — expect wider price swings.
BKH is growing revenue faster at -3.0% — sustainability is the question.
SWX generates stronger free cash flow (-47M), providing more financial flexibility.
Monitor UTILITIES - REGULATED GAS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SWX scores higher overall (65/100 vs 51/100), backed by strong 26.1% margins. BKH offers better value entry with a 15.5% margin of safety. Both earn "Strong 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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