WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Black Hills Corporation generates 19% more annual revenue ($2.31B vs $1.94B). SWX leads profitability with a 22.7% profit margin vs 12.6%. SWX appears more attractively valued with a PEG of 2.15. SWX earns a higher WallStSmart Score of 57/100 (C).

BKH

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 7.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.92

SWX

Buy

57

out of 100

Grade: C

Growth: 2.0Profit: 6.5Value: 7.3Quality: 4.8
Piotroski: 4/9Altman Z: 0.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BKHSignificantly Overvalued (-120.3%)

Margin of Safety

-120.3%

Fair Value

$32.96

Current Price

$68.85

$35.89 premium

UndervaluedFair: $32.96Overvalued
SWXSignificantly Overvalued (-289.0%)

Margin of Safety

-289.0%

Fair Value

$22.10

Current Price

$85.82

$63.72 premium

UndervaluedFair: $22.10Overvalued

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

P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

Operating MarginProfitability
26.2%8/10

Strong operational efficiency at 26.2%

SWX3 strengths · Avg: 9.0/10
Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

Profit MarginProfitability
22.7%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

BKH4 concerns · Avg: 3.0/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

EPS GrowthGrowth
0.9%4/10

0.9% earnings growth

Free Cash FlowQuality
$-101.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

SWX4 concerns · Avg: 3.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

P/E RatioValuation
26.6x4/10

Moderate valuation

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Revenue GrowthGrowth
-13.1%2/10

Revenue declined 13.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : BKH

The strongest argument for BKH centers on Price/Book, P/E Ratio, Operating Margin.

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 : BKH

The primary concerns for BKH are PEG Ratio, EPS Growth, Free Cash Flow.

Bear Case : SWX

The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.

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 0.70 — expect wider price swings.

BKH is growing revenue faster at 6.4% — sustainability is the question.

BKH generates stronger free cash flow (-102M), providing more financial flexibility.

Bottom Line

BKH scores higher overall (57/100 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.

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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