WallStSmart

NiSource Inc (NI)vsNorthwest Natural Gas Co (NWN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NiSource Inc generates 415% more annual revenue ($6.64B vs $1.29B). NI leads profitability with a 14.0% profit margin vs 8.8%. NI appears more attractively valued with a PEG of 2.20. NWN earns a higher WallStSmart Score of 64/100 (C+).

NI

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 8.7Quality: 3.8
Piotroski: 4/9Altman Z: 0.59

NWN

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 0.72
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NIUndervalued (+6.7%)

Margin of Safety

+6.7%

Fair Value

$47.89

Current Price

$45.68

$2.21 discount

UndervaluedFair: $47.89Overvalued
NWNUndervalued (+61.1%)

Margin of Safety

+61.1%

Fair Value

$125.65

Current Price

$52.47

$73.18 discount

UndervaluedFair: $125.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NI3 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.0%8/10

Strong operational efficiency at 27.0%

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

NWN3 strengths · Avg: 8.7/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
25.4%8/10

Strong operational efficiency at 25.4%

EPS GrowthGrowth
24.1%8/10

Earnings expanding 24.1% YoY

Areas to Watch

NI3 concerns · Avg: 2.7/10
PEG RatioValuation
2.204/10

Expensive relative to growth rate

Free Cash FlowQuality
$-133.70M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.592/10

Distress zone — elevated risk

NWN4 concerns · Avg: 2.5/10
Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Debt/EquityHealth
1.763/10

Elevated debt levels

PEG RatioValuation
2.712/10

Expensive relative to growth rate

Free Cash FlowQuality
$-130.97M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : NI

The strongest argument for NI centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 19.8% demonstrates continued momentum.

Bull Case : NWN

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

Bear Case : NI

The primary concerns for NI are PEG Ratio, Free Cash Flow, Altman Z-Score.

Bear Case : NWN

The primary concerns for NWN are Return on Equity, Debt/Equity, PEG Ratio. Debt-to-equity of 1.76 is elevated, increasing financial risk.

Key Dynamics to Monitor

NI profiles as a growth stock while NWN is a value play — different risk/reward profiles.

NI carries more volatility with a beta of 0.62 — expect wider price swings.

NI is growing revenue faster at 19.8% — sustainability is the question.

NWN generates stronger free cash flow (-131M), providing more financial flexibility.

Bottom Line

NWN scores higher overall (64/100 vs 62/100). 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.

NiSource Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

NiSource Inc. is one of the largest fully regulated utility companies in the United States. The company is based in Merrillville, Indiana.

Northwest Natural Gas Co

UTILITIES · UTILITIES - REGULATED GAS · USA

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial and transportation customers in Oregon and Southwest Washington. The company is headquartered in Portland, Oregon.

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