Southwest Gas (NYSE:SWX) vs. National Fuel Gas (NYSE:NFG) Head to Head Survey

National Fuel Gas (NYSE:NFG) and Southwest Gas (NYSE:SWX) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares National Fuel Gas and Southwest Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Fuel Gas	26.97%	19.04%	7.33%
Southwest Gas	31.85%	6.79%	2.63%

Dividends

National Fuel Gas pays an annual dividend of $2.22 per share and has a dividend yield of 2.7%. Southwest Gas pays an annual dividend of $2.58 per share and has a dividend yield of 2.9%. National Fuel Gas pays out 30.8% of its earnings in the form of a dividend. Southwest Gas pays out 33.7% 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. National Fuel Gas has increased its dividend for 55 consecutive years.

Risk and Volatility

National Fuel Gas has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Southwest Gas has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for National Fuel Gas and Southwest Gas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Fuel Gas	0	2	1	1	2.75
Southwest Gas	0	1	6	0	2.86

National Fuel Gas presently has a consensus target price of $105.50, suggesting a potential upside of 27.15%. Southwest Gas has a consensus target price of $100.67, suggesting a potential upside of 13.18%. Given National Fuel Gas’ higher probable upside, research analysts clearly believe National Fuel Gas is more favorable than Southwest Gas.

Insider and Institutional Ownership

74.0% of National Fuel Gas shares are held by institutional investors. Comparatively, 92.8% of Southwest Gas shares are held by institutional investors. 1.3% of National Fuel Gas shares are held by insiders. Comparatively, 0.6% of Southwest Gas shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares National Fuel Gas and Southwest Gas”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Fuel Gas	$2.51 billion	3.14	$518.50 million	$7.20	11.52
Southwest Gas	$1.74 billion	3.70	$439.83 million	$7.66	11.61

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

About National Fuel Gas

National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil. The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, as well as provides gathering services to Seneca. The Utility segment sells natural gas or provides natural gas utility services to various customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.

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.