Comparing Superior Plus (OTCMKTS:SUUIF) and Southwest Gas (NYSE:SWX)

Southwest Gas (NYSE:SWX) and Superior Plus (OTCMKTS:SUUIF) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Southwest Gas and Superior Plus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southwest Gas	0	1	7	0	2.88
Superior Plus	0	6	1	0	2.14

Southwest Gas presently has a consensus target price of $98.29, indicating a potential upside of 9.74%. Given Southwest Gas’ stronger consensus rating and higher possible upside, research analysts clearly believe Southwest Gas is more favorable than Superior Plus.

Dividends

Southwest Gas pays an annual dividend of $2.58 per share and has a dividend yield of 2.9%. Superior Plus pays an annual dividend of $0.60 per share and has a dividend yield of 11.6%. Southwest Gas pays out 33.7% of its earnings in the form of a dividend. Superior Plus pays out 312.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

92.8% of Southwest Gas shares are held by institutional investors. Comparatively, 27.9% of Superior Plus shares are held by institutional investors. 0.6% of Southwest Gas shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Southwest Gas and Superior Plus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southwest Gas	$1.94 billion	3.34	$439.83 million	$7.66	11.69
Superior Plus	N/A	N/A	N/A	$0.19	27.00

Southwest Gas has higher revenue and earnings than Superior Plus. Southwest Gas is trading at a lower price-to-earnings ratio than Superior Plus, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Southwest Gas and Superior Plus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southwest Gas	31.85%	6.91%	2.64%
Superior Plus	N/A	N/A	N/A

Summary

Southwest Gas beats Superior Plus on 11 of the 13 factors compared between the two stocks.

About Southwest Gas

Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2023, it had 2,226,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.

About Superior Plus

Superior Plus Corp. distributes and markets propane, compressed natural gas and renewable energy in both the United States and Canada. The company operates through The United States Retail Propane Distribution (U.S. Propane), Canadian Retail Propane Distribution (Canadian Propane), and North American Wholesale Propane Distribution (Wholesale Propane), and Certarus segments. The U.S. Propane Distribution segment distributes propane gas and liquid fuels primarily in the Eastern United States, the Midwest, and California to retail customers, including residential and commercial customers. The Canadian Propane segment distributes propane gas and liquid fuels across Canada to retail customers, including residential and commercial customers. The Wholesale Propane segment supplies propane gas for the Canadian Propane and the U.S. Propane segments, as well as propane and other natural gas liquids to third-party wholesale customers in Canada and the United States. The Certarus segment provides low-carbon energy solution for transporting, compressed natural gas, renewable natural gas, and hydrogen. Superior Plus Corp. was incorporated in 1989 and is based in Toronto, Canada.