Analyzing Superior Plus (OTCMKTS:SUUIF) and Northwest Natural Gas (NYSE:NWN)

Northwest Natural Gas (NYSE:NWN) and Superior Plus (OTCMKTS:SUUIF) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northwest Natural Gas	$1.29 billion	1.62	$113.32 million	$3.00	16.63
Superior Plus	N/A	N/A	N/A	$0.19	29.81

Northwest Natural Gas has higher revenue and earnings than Superior Plus. Northwest Natural 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Northwest Natural Gas and Superior Plus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northwest Natural Gas	0	3	3	1	2.71
Superior Plus	0	6	1	0	2.14

Northwest Natural Gas currently has a consensus price target of $55.25, suggesting a potential upside of 10.73%. Given Northwest Natural Gas’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Northwest Natural Gas is more favorable than Superior Plus.

Dividends

Northwest Natural Gas pays an annual dividend of $1.97 per share and has a dividend yield of 3.9%. Superior Plus pays an annual dividend of $0.60 per share and has a dividend yield of 10.5%. Northwest Natural Gas pays out 65.7% 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. Northwest Natural Gas has increased its dividend for 70 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northwest Natural Gas	9.75%	8.33%	2.03%
Superior Plus	N/A	N/A	N/A

Insider & Institutional Ownership

75.1% of Northwest Natural Gas shares are held by institutional investors. Comparatively, 27.9% of Superior Plus shares are held by institutional investors. 0.5% of Northwest Natural Gas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Northwest Natural Gas beats Superior Plus on 13 of the 15 factors compared between the two stocks.

About Northwest Natural Gas

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, and industrial customers in the United States. The company operates a mist gas storage facility contracted to other utilities, third-party marketers, and electric generators; offers natural gas asset management services; and operates an appliance retail center. It also engages in gas storage, water and wastewater, non-regulated renewable natural gas, and other investment businesses. In addition, the company provides natural gas service in Oregon and southwest Washington; and water and wastewater connections. Northwest Natural Holding Company was founded in 1859 and is headquartered in Portland, Oregon.

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.