WallStSmart

MDU Resources Group Inc (MDU)vsSouthwest Gas Holdings Inc (SWX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southwest Gas Holdings Inc generates 3% more annual revenue ($1.94B vs $1.88B). SWX leads profitability with a 22.7% profit margin vs 10.2%. SWX appears more attractively valued with a PEG of 2.15. MDU earns a higher WallStSmart Score of 61/100 (C+).

MDU

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 5.5Value: 10.0Quality: 3.3
Piotroski: 3/9Altman Z: 0.99

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

MDUUndervalued (+52.9%)

Margin of Safety

+52.9%

Fair Value

$43.52

Current Price

$20.55

$22.97 discount

UndervaluedFair: $43.52Overvalued
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

MDU3 strengths · Avg: 8.0/10
Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.2%8/10

Strong operational efficiency at 20.2%

EPS GrowthGrowth
39.4%8/10

Earnings expanding 39.4% YoY

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

MDU4 concerns · Avg: 3.0/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.3%2/10

Revenue declined 0.3%

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 : MDU

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

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 : MDU

The primary concerns for MDU are PEG Ratio, Return on Equity, Piotroski F-Score.

Bear Case : SWX

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

Key Dynamics to Monitor

SWX carries more volatility with a beta of 0.60 — expect wider price swings.

MDU is growing revenue faster at -0.3% — sustainability is the question.

MDU generates stronger free cash flow (-358M), providing more financial flexibility.

Monitor UTILITIES - REGULATED GAS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MDU scores higher overall (61/100 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.

MDU Resources Group Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

MDU Resources Group, Inc. is involved in the regulated power supply and construction materials and services businesses in the United States. The company is headquartered in Bismarck, North 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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