Investors are evaluating the performance of two utility companies, NiSource (NYSE: NI) and Centuri (NYSE: CTRI), to determine which stock offers a better investment opportunity. A thorough comparison reveals that NiSource exhibits stronger institutional ownership, lower volatility, and more favorable earnings potential than Centuri.
Valuation and Earnings Analysis
In the realm of valuation and earnings, NiSource outshines Centuri. NiSource has a consensus target price of $47.11, indicating a potential upside of 6.73%. Conversely, Centuri’s target price stands at $26.40, which suggests a potential downside of 8.81%. This disparity highlights the more optimistic outlook analysts have for NiSource, as it currently holds a stronger consensus rating.
Earnings per share (EPS) and revenue figures further underscore NiSource’s advantage in financial stability and growth potential. The comparison of these metrics reveals that NiSource’s robust financial performance places it in a more favorable position within the market.
Profitability and Risk Assessment
When examining profitability, NiSource maintains superior net margins, return on equity, and return on assets compared to Centuri. Strong profit margins indicate that NiSource effectively manages costs while maximizing revenue.
Risk factors are also a critical consideration for investors. NiSource’s beta is measured at 0.65, suggesting that its stock is 35% less volatile than the S&P 500. In contrast, Centuri has a beta of 0.81, indicating its stock is 19% less volatile than the index. The lower beta for NiSource makes it an appealing option for risk-averse investors seeking stability.
In terms of ownership, 91.6% of NiSource shares are held by institutional investors, while both NiSource and Centuri have 0.2% of their shares held by insiders. The strong institutional backing for NiSource suggests confidence among large investors regarding its long-term performance.
Company Profiles
Founded in 1847, NiSource Inc. operates as a regulated natural gas and electric utility company headquartered in Merrillville, Indiana. The company serves approximately 3.3 million natural gas customers across 55,000 miles of distribution pipelines and engages in wholesale electric transactions. NiSource also operates several power generation facilities, including coal-fired plants and renewable energy sources like wind and solar.
On the other hand, Centuri Holdings, established in 1909 and based in Phoenix, Arizona, operates as a utility infrastructure services company. It primarily focuses on the maintenance and modernization of gas utility infrastructure, providing essential services to electric and gas utility companies. Centuri serves various markets, including renewable energy and telecommunications.
In conclusion, the analysis suggests that NiSource may present a more attractive investment option compared to Centuri. Its stronger consensus ratings, solid financial performance, and lower risk profile contribute to a more favorable outlook for potential investors.
