WallStSmart

One Gas Inc (OGS)vsSouthwest Gas Holdings Inc (SWX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

One Gas Inc generates 31% more annual revenue ($2.32B vs $1.78B). SWX leads profitability with a 26.1% profit margin vs 11.8%. SWX appears more attractively valued with a PEG of 2.20. SWX earns a higher WallStSmart Score of 65/100 (B-).

OGS

Buy

51

out of 100

Grade: C-

Growth: 2.7Profit: 6.5Value: 4.7Quality: 3.8
Piotroski: 5/9Altman Z: 0.88

SWX

Strong Buy

65

out of 100

Grade: B-

Growth: 4.0Profit: 7.0Value: 4.0Quality: 4.8
Piotroski: 4/9Altman Z: 0.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OGSUndervalued (+7.2%)

Margin of Safety

+7.2%

Fair Value

$89.84

Current Price

$84.96

$4.88 discount

UndervaluedFair: $89.84Overvalued
SWXSignificantly Overvalued (-29.1%)

Margin of Safety

-29.1%

Fair Value

$66.62

Current Price

$89.13

$22.51 premium

UndervaluedFair: $66.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OGS2 strengths · Avg: 8.0/10
Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.7%8/10

Strong operational efficiency at 22.7%

SWX4 strengths · Avg: 8.8/10
Operating MarginProfitability
37.9%10/10

Strong operational efficiency at 37.9%

Profit MarginProfitability
26.1%9/10

Keeps 26 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.9%8/10

Earnings expanding 20.9% YoY

Areas to Watch

OGS4 concerns · Avg: 2.5/10
EPS GrowthGrowth
3.0%4/10

3.0% earnings growth

PEG RatioValuation
4.192/10

Expensive relative to growth rate

Revenue GrowthGrowth
-11.1%2/10

Revenue declined 11.1%

Altman Z-ScoreHealth
0.882/10

Distress zone — elevated risk

SWX4 concerns · Avg: 3.3/10
PEG RatioValuation
2.204/10

Expensive relative to growth rate

P/E RatioValuation
27.0x4/10

Moderate valuation

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Revenue GrowthGrowth
-21.6%2/10

Revenue declined 21.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : OGS

The strongest argument for OGS 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 : OGS

The primary concerns for OGS are EPS Growth, 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

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

OGS is growing revenue faster at -11.1% — sustainability is the question.

OGS generates stronger free cash flow (20M), 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. 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.

One Gas Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

ONE Gas, Inc. is a regulated natural gas distribution company in the United States. The company is headquartered in Tulsa, Oklahoma.

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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