Northwest Natural (NYSE:NWN) and New Fortress Energy (NASDAQ:NFE) are both small-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Valuation & Earnings
This table compares Northwest Natural and New Fortress Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Northwest Natural||$706.14 million||2.66||$64.57 million||$2.33||27.83|
|New Fortress Energy||N/A||N/A||N/A||N/A||N/A|
Institutional and Insider Ownership
68.5% of Northwest Natural shares are held by institutional investors. 1.2% of Northwest Natural shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Northwest Natural and New Fortress Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New Fortress Energy||0||2||6||0||2.75|
Northwest Natural presently has a consensus target price of $62.67, suggesting a potential downside of 3.35%. New Fortress Energy has a consensus target price of $19.57, suggesting a potential upside of 81.72%. Given New Fortress Energy’s stronger consensus rating and higher probable upside, analysts clearly believe New Fortress Energy is more favorable than Northwest Natural.
Northwest Natural pays an annual dividend of $1.90 per share and has a dividend yield of 2.9%. New Fortress Energy does not pay a dividend. Northwest Natural pays out 81.5% 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 has raised its dividend for 63 consecutive years.
This table compares Northwest Natural and New Fortress Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New Fortress Energy||N/A||N/A||N/A|
Northwest Natural beats New Fortress Energy on 8 of the 12 factors compared between the two stocks.
Northwest Natural Company Profile
Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, and industrial customers in Oregon and Southwest Washington. It is also involved in the gas storage activities, water businesses, and other investments and activities. The company was founded in 1859 and is headquartered in Portland, Oregon.
New Fortress Energy Company Profile
New Fortress Energy LLC operates as an integrated gas-to-power company. The company's activities include natural gas procurement and liquefaction; provision of logistics and shipping services; development and operation of terminals; and conversion or development of natural gas-fired generation. It intends to serve power, transportation, and industrial users of natural gas and LNG. The company was founded in 1998 and is based in New York, New York. New Fortress Energy LLC is a subsidiary of Fortress Investment Group LLC.
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