Southern Company Gas (GAS) vs. Its Peers Critical Contrast

Southern Company Gas (NYSE: GAS) is one of 14 public companies in the “Natural Gas Distribution” industry, but how does it weigh in compared to its peers? We will compare Southern Company Gas to related companies based on the strength of its analyst recommendations, profitability, risk, dividends, valuation, earnings and institutional ownership.

Insider & Institutional Ownership

65.8% of shares of all “Natural Gas Distribution” companies are held by institutional investors. 2.2% of shares of all “Natural Gas Distribution” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Southern Company Gas and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southern Company Gas 0 0 0 0 N/A
Southern Company Gas Competitors 59 212 229 5 2.36

As a group, “Natural Gas Distribution” companies have a potential downside of 1.16%. Given Southern Company Gas’ peers higher possible upside, analysts clearly believe Southern Company Gas has less favorable growth aspects than its peers.

Volatility and Risk

Southern Company Gas has a beta of -0.08, meaning that its share price is 108% less volatile than the S&P 500. Comparatively, Southern Company Gas’ peers have a beta of 0.46, meaning that their average share price is 54% less volatile than the S&P 500.

Dividends

Southern Company Gas pays an annual dividend of $2.12 per share and has a dividend yield of 3.2%. Southern Company Gas pays out 74.6% of its earnings in the form of a dividend. As a group, “Natural Gas Distribution” companies pay a dividend yield of 2.4% and pay out 64.6% of their earnings in the form of a dividend. Southern Company Gas has increased its dividend for 5 consecutive years.

Earnings & Valuation

This table compares Southern Company Gas and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Southern Company Gas N/A N/A 23.23
Southern Company Gas Competitors $2.09 billion $171.32 million 23.55

Southern Company Gas’ peers have higher revenue and earnings than Southern Company Gas. Southern Company Gas is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Southern Company Gas and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southern Company Gas 2.65% 0.65% 0.27%
Southern Company Gas Competitors 4.34% -11.14% 3.64%

Summary

Southern Company Gas peers beat Southern Company Gas on 8 of the 10 factors compared.

About Southern Company Gas

Southern Company Gas, formerly AGL Resources Inc, is a natural gas-only distribution company. The Company operates in four operating segments: distribution operations, retail operations, wholesale services and midstream operations. The Company’s distribution operations segment is engaged in providing natural gas to residential, commercial and industrial customers. The retail operations segment is involved in the provision of natural gas commodity and related services. The wholesale services segment is engaged in natural gas storage, gas pipeline arbitrage and provides natural gas asset management and related logistics services for its utilities, as well as for non-affiliated companies. Midstream operations segment consists primarily of natural gas storage facilities and select pipelines, enabling the provision of diverse sources of natural gas supplies to its customers.

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