Energy Transfer vs Southwest Gas Which Is More Lucrative?

Energy Transfer and Southwest Gas are two companies operating in the energy sector with different focuses. Energy Transfer primarily deals with the transportation, storage, and distribution of natural gas and crude oil, while Southwest Gas provides natural gas services to residential, commercial, and industrial customers. Both companies have seen fluctuations in their stock prices due to various factors such as market demand, regulatory changes, and global economic conditions. Investors may consider the financial stability, growth potential, and industry trends when comparing Energy Transfer and Southwest Gas stocks.

Energy Transfer or Southwest Gas?

When comparing Energy Transfer and Southwest Gas, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Energy Transfer and Southwest Gas.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Energy Transfer has a dividend yield of 6.65%, while Southwest Gas has a dividend yield of 3.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Energy Transfer reports a 5-year dividend growth of 0.24% year and a payout ratio of 110.76%. On the other hand, Southwest Gas reports a 5-year dividend growth of 3.83% year and a payout ratio of 97.81%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Energy Transfer P/E ratio at 12.94 and Southwest Gas's P/E ratio at 29.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Energy Transfer P/B ratio is 1.86 while Southwest Gas's P/B ratio is 1.56.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Energy Transfer has seen a 5-year revenue growth of -0.35%, while Southwest Gas's is 0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Energy Transfer's ROE at 13.56% and Southwest Gas's ROE at 5.34%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.81 for Energy Transfer and $74.72 for Southwest Gas. Over the past year, Energy Transfer's prices ranged from $13.22 to $20.02, with a yearly change of 51.44%. Southwest Gas's prices fluctuated between $57.55 and $80.29, with a yearly change of 39.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.