Financial Survey: Southwest Gas (NYSE:SWX) & Tokyo Gas Co.,Ltd. (OTCMKTS:TKGSY)

Southwest Gas (NYSE:SWX) and Tokyo Gas Co.,Ltd. (OTCMKTS:TKGSY) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares Southwest Gas and Tokyo Gas Co.,Ltd.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southwest Gas	$1.94 billion	3.42	$439.83 million	$7.66	11.95
Tokyo Gas Co.,Ltd.	N/A	N/A	N/A	$197.62	0.09

Southwest Gas has higher revenue and earnings than Tokyo Gas Co.,Ltd.. Tokyo Gas Co.,Ltd. is trading at a lower price-to-earnings ratio than Southwest Gas, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

92.8% of Southwest Gas shares are held by institutional investors. Comparatively, 0.1% of Tokyo Gas Co.,Ltd. shares are held by institutional investors. 0.6% of Southwest Gas shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Southwest Gas and Tokyo Gas Co.,Ltd.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southwest Gas	31.85%	6.91%	2.64%
Tokyo Gas Co.,Ltd.	N/A	N/A	N/A

Dividends

Southwest Gas pays an annual dividend of $2.58 per share and has a dividend yield of 2.8%. Tokyo Gas Co.,Ltd. pays an annual dividend of $0.22 per share and has a dividend yield of 1.2%. Southwest Gas pays out 33.7% of its earnings in the form of a dividend. Tokyo Gas Co.,Ltd. pays out 0.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of current ratings for Southwest Gas and Tokyo Gas Co.,Ltd., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southwest Gas	0	1	6	1	3.00
Tokyo Gas Co.,Ltd.	0	0	0	0	0.00

Southwest Gas presently has a consensus target price of $98.29, indicating a potential upside of 7.39%. Given Southwest Gas’ stronger consensus rating and higher probable upside, equities analysts plainly believe Southwest Gas is more favorable than Tokyo Gas Co.,Ltd..

Summary

Southwest Gas beats Tokyo Gas Co.,Ltd. on 12 of the 14 factors compared between the two stocks.

About Southwest Gas

Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2023, it had 2,226,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.

About Tokyo Gas Co.,Ltd.

Tokyo Gas Co.,Ltd. engages in the production, supply, and sale of city gas, and LNG in Japan. The company offers engineering solutions; gas construction; and gas pipelines services, as well as engages in gas appliances business. It is also involved in fuel procurement, power generation, and sales of electricity; and overseas resource development, renewable energy, and LNG infrastructure business. In addition, the company provides district heating and cooling, and energy services; and develops LNG terminals and pipes. Further, it engages in the real estate development activities; and leasing and management of land and buildings. The company was formerly known as Tokyo Gas Company and changed its name to Tokyo Gas Co.,Ltd. in July 1893. The company was incorporated in 1885 and is headquartered in Tokyo, Japan.