Head to Head Contrast: Southwest Gas (NYSE:SWX) vs. Centuri (NYSE:CTRI)

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

Insider and Institutional Ownership

92.8% of Southwest Gas shares are held by institutional investors. 0.4% of Southwest Gas shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Southwest Gas and Centuri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southwest Gas	3.44%	6.18%	1.76%
Centuri	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southwest Gas	$5.30 billion	1.00	$150.89 million	$2.52	29.23
Centuri	$2.64 billion	0.64	-$186.18 million	N/A	N/A

Southwest Gas has higher revenue and earnings than Centuri.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Southwest Gas and Centuri, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southwest Gas	0	3	0	0	2.00
Centuri	2	2	2	2	2.50

Southwest Gas presently has a consensus price target of $73.67, suggesting a potential upside of 0.02%. Centuri has a consensus price target of $20.00, suggesting a potential upside of 5.21%. Given Centuri’s stronger consensus rating and higher possible upside, analysts plainly believe Centuri is more favorable than Southwest Gas.

Summary

Southwest Gas beats Centuri on 8 of the 12 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 Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.