Northwest Natural Gas Co (NWN)vsSouthwest Gas Holdings Inc (SWX)
NWN
Northwest Natural Gas Co
$52.47
+0.42%
UTILITIES · Cap: $2.18B
SWX
Southwest Gas Holdings Inc
$85.82
-0.61%
UTILITIES · Cap: $6.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Gas Holdings Inc generates 50% more annual revenue ($1.94B vs $1.29B). SWX leads profitability with a 22.7% profit margin vs 8.8%. SWX appears more attractively valued with a PEG of 2.15. NWN earns a higher WallStSmart Score of 64/100 (C+).
NWN
Buy64
out of 100
Grade: C+
SWX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.1%
Fair Value
$125.65
Current Price
$52.47
$73.18 discount
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
Strong operational efficiency at 25.4%
Earnings expanding 24.1% YoY
Strong operational efficiency at 33.9%
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
ROE of 7.9% — below average capital efficiency
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
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 : NWN
The strongest argument for NWN centers on Price/Book, Operating Margin, EPS Growth.
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 : 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.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
NWN profiles as a value stock while SWX is a declining play — different risk/reward profiles.
SWX carries more volatility with a beta of 0.60 — expect wider price swings.
NWN is growing revenue faster at 6.3% — sustainability is the question.
NWN generates stronger free cash flow (-131M), providing more financial flexibility.
Bottom Line
NWN scores higher overall (64/100 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.
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.
Visit Website →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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