Financial Survey: South Jersey Industries (NYSE:SJI) vs. Just Energy Group (JE)

Just Energy Group (NYSE: JE) and South Jersey Industries (NYSE:SJI) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

29.4% of Just Energy Group shares are held by institutional investors. Comparatively, 69.3% of South Jersey Industries shares are held by institutional investors. 0.6% of South Jersey Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Just Energy Group and South Jersey Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Just Energy Group 0 2 3 0 2.60
South Jersey Industries 0 3 3 0 2.50

Just Energy Group currently has a consensus price target of $8.80, indicating a potential upside of 57.14%. South Jersey Industries has a consensus price target of $38.33, indicating a potential upside of 10.15%. Given Just Energy Group’s stronger consensus rating and higher probable upside, analysts plainly believe Just Energy Group is more favorable than South Jersey Industries.

Earnings & Valuation

This table compares Just Energy Group and South Jersey Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Just Energy Group $2.92 billion 0.28 $164.63 million $0.05 112.00
South Jersey Industries $1.22 billion 2.26 $261.72 million $1.07 32.52

South Jersey Industries has higher revenue, but lower earnings than Just Energy Group. South Jersey Industries is trading at a lower price-to-earnings ratio than Just Energy Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Just Energy Group and South Jersey Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Just Energy Group 2.18% -117.41% 18.57%
South Jersey Industries 7.02% 7.71% 2.68%

Risk and Volatility

Just Energy Group has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, South Jersey Industries has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Dividends

Just Energy Group pays an annual dividend of $0.37 per share and has a dividend yield of 6.6%. South Jersey Industries pays an annual dividend of $1.09 per share and has a dividend yield of 3.1%. Just Energy Group pays out 740.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. South Jersey Industries pays out 101.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

South Jersey Industries beats Just Energy Group on 9 of the 15 factors compared between the two stocks.

About Just Energy Group

Just Energy Group Inc. (Just Energy) is an energy management solutions provider engaged in electricity, natural gas, solar and green energy. The Company’s segments include Consumer Energy and Commercial Energy. The Company operates in the United States, Canada and the United Kingdom, offering a range of energy products, including long-term fixed-price, variable rate and flat bill programs; home energy management services, including smart thermostats and tools to manage energy use at the appliance level, and residential solar panel installations. It markets under the brands, such as Just Energy, Hudson Energy, Amigo Energy, GreenStar Energy, Just Solar, Tara Energy and TerraPass. Just Energy’s commercial business is operated primarily through Hudson Energy. Hudson Energy offers fixed and variable rate natural gas and electricity contracts, as well as customized products. Just Energy also offers green products through its JustGreen Electricity and Natural Gas and TerraPass programs.

About South Jersey Industries

South Jersey Industries, Inc. (SJI) is an energy services holding company. The Company provides a range of energy-related products and services, primarily through its subsidiaries. Its subsidiaries include South Jersey Gas Company (SJG), South Jersey Energy Company (SJE), South Jersey Resources Group, LLC (SJRG), South Jersey Exploration, LLC (SJEX), Marina Energy, LLC (Marina), South Jersey Energy Service Plus, LLC (SJESP) and SJI Midstream, LLC (Midstream). Its segments include Gas utility operations (SJG), which consist primarily of natural gas distribution; Wholesale energy operations, which include the activities of SJRG and SJEX; SJE, which is involved in both retail gas and retail electric activities; On-Site energy production, which consists of Marina’s thermal energy facility; Appliance service operations, which include SJESP, and Corporate and Services segment, which includes the activities of Midstream.

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