Contrasting NewJersey Resources (NYSE:NJR) and Centrica (OTCMKTS:CPYYY)

NewJersey Resources (NYSE:NJR) and Centrica (OTCMKTS:CPYYY) are both mid-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares NewJersey Resources and Centrica”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewJersey Resources	$1.80 billion	2.63	$289.77 million	$4.09	11.49
Centrica	$21.55 billion	0.46	$1.70 billion	N/A	N/A

Centrica has higher revenue and earnings than NewJersey Resources.

Institutional and Insider Ownership

71.0% of NewJersey Resources shares are held by institutional investors. 0.7% of NewJersey Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares NewJersey Resources and Centrica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewJersey Resources	19.64%	17.08%	5.60%
Centrica	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for NewJersey Resources and Centrica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewJersey Resources	0	4	2	0	2.33
Centrica	0	2	0	0	2.00

NewJersey Resources presently has a consensus price target of $51.43, indicating a potential upside of 9.40%. Given NewJersey Resources’ stronger consensus rating and higher probable upside, equities analysts plainly believe NewJersey Resources is more favorable than Centrica.

Dividends

NewJersey Resources pays an annual dividend of $1.80 per share and has a dividend yield of 3.8%. Centrica pays an annual dividend of $0.30 per share and has a dividend yield of 3.6%. NewJersey Resources pays out 44.0% of its earnings in the form of a dividend. NewJersey Resources has increased its dividend for 29 consecutive years. NewJersey Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

NewJersey Resources has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Centrica has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Summary

NewJersey Resources beats Centrica on 11 of the 15 factors compared between the two stocks.

About NewJersey Resources

New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 576,000 customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates clean energy projects, including commercial and residential solar installation situated in New Jersey, Rhode Island, New York, Connecticut, Michigan, and Indiana. The Energy Services segment maintains and operates natural gas transportation and storage capacity contracts, as well as provides physical wholesale energy, retail energy and energy management services in the United States and Canada. The Storage and Transportation segment invests in invests in energy-related ventures. It provides heating, ventilation, and cooling services; sales and installation of appliances; offers solar equipment installation, and plumbing repair and installation services; and holds commercial real estate properties. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.

About Centrica

Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Scandinavia, North America, and internationally. The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Centrica Energy, and Upstream segments. It supplies gas and electricity to residential, commercial, industrial customers, and small businesses, as well as offers energy-related services; and generates power from nuclear assets. The company also provides installation, repair, and maintenance services for central heating, ventilation, and air conditioning systems, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; procurement and sale of LNG; development and operation of large-scale power assets; building of solar farm and connecting to grid; and supply of energy efficiency solutions and technologies. Further, the company produces and processes gas and oil; constructs, owns, and exploits infrastructure; offers central heating, boiler and controls, plumbing and drains, and electrical appliance insurance covers; and engages in the social enterprise investment fund activities. Additionally, it provides metering assets and services, vehicle leasing, and energy management products and services; constructs battery storage and gas peakers; and operates a gas storage and franchise network. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was founded in 1812 and is based in Windsor, the United Kingdom.