WallStSmart

NewJersey Resources Corporation (NJR)vsSouthwest Gas Holdings Inc (SWX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NewJersey Resources Corporation generates 22% more annual revenue ($2.18B vs $1.78B). SWX leads profitability with a 26.1% profit margin vs 15.7%. SWX appears more attractively valued with a PEG of 2.20. SWX earns a higher WallStSmart Score of 65/100 (B-).

NJR

Buy

61

out of 100

Grade: C+

Growth: 4.0Profit: 7.5Value: 4.7Quality: 4.3
Piotroski: 4/9Altman Z: 1.02

SWX

Strong Buy

65

out of 100

Grade: B-

Growth: 4.0Profit: 7.0Value: 4.0Quality: 4.8
Piotroski: 4/9Altman Z: 0.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NJRSignificantly Overvalued (-32.3%)

Margin of Safety

-32.3%

Fair Value

$39.96

Current Price

$55.82

$15.86 premium

UndervaluedFair: $39.96Overvalued
SWXSignificantly Overvalued (-29.1%)

Margin of Safety

-29.1%

Fair Value

$66.62

Current Price

$89.13

$22.51 premium

UndervaluedFair: $66.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NJR3 strengths · Avg: 8.7/10
Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

SWX4 strengths · Avg: 8.8/10
Operating MarginProfitability
37.9%10/10

Strong operational efficiency at 37.9%

Profit MarginProfitability
26.1%9/10

Keeps 26 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.9%8/10

Earnings expanding 20.9% YoY

Areas to Watch

NJR3 concerns · Avg: 3.3/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Altman Z-ScoreHealth
1.022/10

Distress zone — elevated risk

SWX4 concerns · Avg: 3.3/10
PEG RatioValuation
2.204/10

Expensive relative to growth rate

P/E RatioValuation
27.0x4/10

Moderate valuation

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Revenue GrowthGrowth
-21.6%2/10

Revenue declined 21.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : NJR

The strongest argument for NJR centers on Operating Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 15.7% and operating margin at 32.0%.

Bull Case : SWX

The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 26.1% and operating margin at 37.9%.

Bear Case : NJR

The primary concerns for NJR are PEG Ratio, Revenue Growth, Altman Z-Score.

Bear Case : SWX

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

Key Dynamics to Monitor

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

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

NJR is growing revenue faster at 2.9% — sustainability is the question.

NJR generates stronger free cash flow (366M), providing more financial flexibility.

Bottom Line

SWX scores higher overall (65/100 vs 61/100), backed by strong 26.1% margins. Both earn "Strong 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.

NewJersey Resources Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

New Jersey Resources Corporation, an energy services portfolio company, provides regulated gas distribution and retail and wholesale energy services. The company is headquartered in Wall, New Jersey.

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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