WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NewJersey Resources Corporation generates 11% more annual revenue ($2.15B vs $1.94B). SWX leads profitability with a 22.7% profit margin vs 15.2%. SWX appears more attractively valued with a PEG of 2.08. SWX earns a higher WallStSmart Score of 57/100 (C).

NJR

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 5.5Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 1.02

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

NJRSignificantly Overvalued (-140.7%)

Margin of Safety

-140.7%

Fair Value

$21.96

Current Price

$54.21

$32.25 premium

UndervaluedFair: $21.96Overvalued
SWXSignificantly Overvalued (-289.0%)

Margin of Safety

-289.0%

Fair Value

$22.10

Current Price

$86.35

$64.25 premium

UndervaluedFair: $22.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NJR3 strengths · Avg: 8.0/10
P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

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

NJR4 concerns · Avg: 2.5/10
PEG RatioValuation
2.104/10

Expensive relative to growth rate

EPS GrowthGrowth
-88.4%2/10

Earnings declined 88.4%

Free Cash FlowQuality
$-139.67M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.022/10

Distress zone — elevated risk

SWX4 concerns · Avg: 3.3/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

P/E RatioValuation
25.7x4/10

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 : NJR

The strongest argument for NJR centers on P/E Ratio, Price/Book, Revenue Growth. Profitability is solid with margins at 15.2% and operating margin at -7.5%. Revenue growth of 23.0% demonstrates continued momentum.

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 : NJR

The primary concerns for NJR 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

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

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

NJR is growing revenue faster at 23.0% — sustainability is the question.

NJR generates stronger free cash flow (-140M), providing more financial flexibility.

Bottom Line

SWX scores higher overall (57/100 vs 53/100), backed by strong 22.7% margins. 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.

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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