WallStSmart

Black Hills Corporation (BKH)vsSouthwest Gas Holdings Inc (SWX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Black Hills Corporation generates 32% more annual revenue ($2.30B vs $1.74B). SWX leads profitability with a 31.4% profit margin vs 13.0%. SWX appears more attractively valued with a PEG of 2.21. SWX earns a higher WallStSmart Score of 63/100 (C+).

BKH

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 4.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.92

SWX

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 5.0Quality: 4.5
Piotroski: 5/9Altman Z: 0.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BKHUndervalued (+1.4%)

Margin of Safety

+1.4%

Fair Value

$73.67

Current Price

$73.39

$0.28 discount

UndervaluedFair: $73.67Overvalued

Intrinsic value data unavailable for SWX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BKH3 strengths · Avg: 8.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

EPS GrowthGrowth
31.6%8/10

Earnings expanding 31.6% YoY

SWX4 strengths · Avg: 8.5/10
Profit MarginProfitability
31.4%10/10

Keeps 31 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.2%8/10

Strong operational efficiency at 24.2%

EPS GrowthGrowth
20.9%8/10

Earnings expanding 20.9% YoY

Areas to Watch

BKH4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Debt/EquityHealth
1.143/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SWX4 concerns · Avg: 2.5/10
PEG RatioValuation
2.214/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.6%2/10

Revenue declined 9.6%

Free Cash FlowQuality
$-174.31M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.892/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BKH

The strongest argument for BKH centers on Price/Book, Operating Margin, EPS Growth.

Bull Case : SWX

The strongest argument for SWX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 31.4% and operating margin at 24.2%.

Bear Case : BKH

The primary concerns for BKH are Revenue Growth, Return on Equity, Debt/Equity.

Bear Case : SWX

The primary concerns for SWX are PEG Ratio, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

BKH profiles as a value stock while SWX is a declining play — different risk/reward profiles.

BKH carries more volatility with a beta of 0.69 — expect wider price swings.

BKH is growing revenue faster at 3.1% — sustainability is the question.

BKH generates stronger free cash flow (-73M), providing more financial flexibility.

Bottom Line

BKH scores higher overall (63/100 vs 63/100). 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.

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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