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OGS vs. SWX: Which Utility Stock Has Greater Investment Potential?
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Key Takeaways
ONE Gas and Southwest Gas are compared on growth, leverage, ROE, dividends, spending and stock returns.
SWX EPS is projected to grow 16.99% in 2026 and 15.18% in 2027; OGS at 9.60% and 3.26%.
OGS has higher ROE and dividend yield, while SWX has lower leverage and a larger capital plan.
The companies operating in the Zacks Utility - Gas Distribution industry deliver natural gas through extensive pipeline networks to residential, commercial and industrial customers. They support reliable energy access while upgrading infrastructure to meet rising demand. The regulated framework allows utilities to recover costs through approved rate increases while supporting shareholder returns through dividends and share repurchases.
U.S. natural gas demand is rising due to its availability and lower-emission profile. Growing electricity needs from AI-powered data centers, households and reshoring industries are boosting demand for gas-fired power generation. This trend can increase pipeline use, encourage infrastructure spending and support long-term earnings growth for regulated gas utilities.
Amid growing demand for natural gas, ONE Gas, Inc. (OGS - Free Report) and Southwest Gas Holdings, Inc. (SWX - Free Report) stand out as regulated utilities benefiting from rising gas demand, implementation of new rates and continued infrastructure investments.
ONE Gas benefits from new rates and rising natural gas demand, with an expanding customer base supporting stable earnings and predictable cash flows. Its strategic investments in infrastructure strengthen service reliability, enhance operational efficiency and support long-term growth.
Southwest Gas benefits from its regulated structure, approved rate increases and customer growth, supporting its financial performance. Ongoing economic development across its service territories is attracting new customers, driving steady demand growth and supporting revenue expansion. The company’s systematic capital investment plans support infrastructure development, ensuring reliable service for its expanding customer base and supporting long-term growth.
ONE Gas and Southwest Gas are prominent regulated gas utilities. A side-by-side comparison of their fundamentals can help investors identify the stock with greater investment appeal.
OGS & SWX: Earnings Growth Projections
The Zacks Consensus Estimate for SWX’s earnings per share is pegged at $4.27 in 2026 and $4.92 in 2027, suggesting year-over-year growth of 16.99% and 15.18%, respectively. SWX has an estimated long-term (three to five years) earnings growth rate of 9.89%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OGS’ earnings per share is pegged at $4.91 in 2026 and $5.07 in 2027, implying year-over-year growth of 9.60% and 3.26%, respectively. OGS has an estimated long-term earnings growth rate of 7.40%.
Image Source: Zacks Investment Research
OGS vs. SWX: Debt to Capital
Utilities require continuous infrastructure investments to maintain and improve their systems, strengthen reliability and meet increasing energy demand. By using internally generated cash flows along with debt and equity financing, these companies fund long-term projects that expand their rate base, support earnings growth and enhance shareholder value.
Southwest Gas’ debt-to-capital ratio stands at 47.70%, slightly below ONE Gas’ 48.95%. Both companies rely on debt to finance their operations, while their leverage remains below the industry average of 54.52%. However, OGS has a higher ratio than SWX, indicating a slightly greater reliance on debt financing.
OGS & SWX: Return on Equity
Return on Equity (“ROE”) is an important financial metric for measuring how efficiently management utilizes shareholders’ funds to generate profit. A higher ROE indicates that management is using shareholders’ capital more efficiently to generate profits and enhance shareholder value.
ONE Gas reports an ROE of 8.82%, higher than Southwest Gas’ 6.91%, indicating that OGS generates better returns on shareholder capital. However, both companies’ returns remain below the industry average of 9.91%.
Image Source: Zacks Investment Research
OGS & SWX’s Dividend Yield
Dividends are regular payments distributed by utility companies to shareholders, providing a direct return on their investment. They also offer investors a steady income stream and reflect a company’s financial stability and commitment to shareholder returns.
Currently, the dividend yield for ONE Gas is 3.36%, while that for Southwest Gas is 2.79%. The dividend yields of both companies are higher than the S&P 500’s yield of 1.33%.
OGS vs. SWX: Capital Investment Plans
Utility businesses require significant capital to build infrastructure, maintain existing assets and improve system reliability. Natural gas utilities regularly invest in pipelines, storage facilities and distribution networks to provide safe, dependable service and accommodate future demand.
Southwest Gas expects to invest $1.25 billion in 2026 and $6.3 billion from 2026 through 2030, mainly supporting safety, system maintenance, reliability and the Great Basin expansion. ONE Gas plans to invest approximately $800 million in 2026 and nearly $4.3 billion over the next five years, primarily toward system integrity, infrastructure replacement and extensions to serve new customers.
OGS vs. SWX: Stock Price Performance
Southwest Gas shares have gained 20.4% over the past year compared with ONE Gas’ 9.4% rally in the same time period.
Image Source: Zacks Investment Research
Summing Up
ONE Gas and Southwest Gas benefit from customer growth and approved rate increases, while continued infrastructure investments help maintain reliable service and support demand across their respective territories.
Southwest Gas’ stronger earnings estimate revisions, larger capital investment plan, lower debt-to-capital ratio and superior stock performance make it the more attractive utility investment.
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OGS vs. SWX: Which Utility Stock Has Greater Investment Potential?
Key Takeaways
The companies operating in the Zacks Utility - Gas Distribution industry deliver natural gas through extensive pipeline networks to residential, commercial and industrial customers. They support reliable energy access while upgrading infrastructure to meet rising demand. The regulated framework allows utilities to recover costs through approved rate increases while supporting shareholder returns through dividends and share repurchases.
U.S. natural gas demand is rising due to its availability and lower-emission profile. Growing electricity needs from AI-powered data centers, households and reshoring industries are boosting demand for gas-fired power generation. This trend can increase pipeline use, encourage infrastructure spending and support long-term earnings growth for regulated gas utilities.
Amid growing demand for natural gas, ONE Gas, Inc. (OGS - Free Report) and Southwest Gas Holdings, Inc. (SWX - Free Report) stand out as regulated utilities benefiting from rising gas demand, implementation of new rates and continued infrastructure investments.
ONE Gas benefits from new rates and rising natural gas demand, with an expanding customer base supporting stable earnings and predictable cash flows. Its strategic investments in infrastructure strengthen service reliability, enhance operational efficiency and support long-term growth.
Southwest Gas benefits from its regulated structure, approved rate increases and customer growth, supporting its financial performance. Ongoing economic development across its service territories is attracting new customers, driving steady demand growth and supporting revenue expansion. The company’s systematic capital investment plans support infrastructure development, ensuring reliable service for its expanding customer base and supporting long-term growth.
ONE Gas and Southwest Gas are prominent regulated gas utilities. A side-by-side comparison of their fundamentals can help investors identify the stock with greater investment appeal.
OGS & SWX: Earnings Growth Projections
The Zacks Consensus Estimate for SWX’s earnings per share is pegged at $4.27 in 2026 and $4.92 in 2027, suggesting year-over-year growth of 16.99% and 15.18%, respectively. SWX has an estimated long-term (three to five years) earnings growth rate of 9.89%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OGS’ earnings per share is pegged at $4.91 in 2026 and $5.07 in 2027, implying year-over-year growth of 9.60% and 3.26%, respectively. OGS has an estimated long-term earnings growth rate of 7.40%.
Image Source: Zacks Investment Research
OGS vs. SWX: Debt to Capital
Utilities require continuous infrastructure investments to maintain and improve their systems, strengthen reliability and meet increasing energy demand. By using internally generated cash flows along with debt and equity financing, these companies fund long-term projects that expand their rate base, support earnings growth and enhance shareholder value.
Southwest Gas’ debt-to-capital ratio stands at 47.70%, slightly below ONE Gas’ 48.95%. Both companies rely on debt to finance their operations, while their leverage remains below the industry average of 54.52%. However, OGS has a higher ratio than SWX, indicating a slightly greater reliance on debt financing.
OGS & SWX: Return on Equity
Return on Equity (“ROE”) is an important financial metric for measuring how efficiently management utilizes shareholders’ funds to generate profit. A higher ROE indicates that management is using shareholders’ capital more efficiently to generate profits and enhance shareholder value.
ONE Gas reports an ROE of 8.82%, higher than Southwest Gas’ 6.91%, indicating that OGS generates better returns on shareholder capital. However, both companies’ returns remain below the industry average of 9.91%.
Image Source: Zacks Investment Research
OGS & SWX’s Dividend Yield
Dividends are regular payments distributed by utility companies to shareholders, providing a direct return on their investment. They also offer investors a steady income stream and reflect a company’s financial stability and commitment to shareholder returns.
Currently, the dividend yield for ONE Gas is 3.36%, while that for Southwest Gas is 2.79%. The dividend yields of both companies are higher than the S&P 500’s yield of 1.33%.
OGS vs. SWX: Capital Investment Plans
Utility businesses require significant capital to build infrastructure, maintain existing assets and improve system reliability. Natural gas utilities regularly invest in pipelines, storage facilities and distribution networks to provide safe, dependable service and accommodate future demand.
Southwest Gas expects to invest $1.25 billion in 2026 and $6.3 billion from 2026 through 2030, mainly supporting safety, system maintenance, reliability and the Great Basin expansion. ONE Gas plans to invest approximately $800 million in 2026 and nearly $4.3 billion over the next five years, primarily toward system integrity, infrastructure replacement and extensions to serve new customers.
OGS vs. SWX: Stock Price Performance
Southwest Gas shares have gained 20.4% over the past year compared with ONE Gas’ 9.4% rally in the same time period.
Image Source: Zacks Investment Research
Summing Up
ONE Gas and Southwest Gas benefit from customer growth and approved rate increases, while continued infrastructure investments help maintain reliable service and support demand across their respective territories.
Southwest Gas’ stronger earnings estimate revisions, larger capital investment plan, lower debt-to-capital ratio and superior stock performance make it the more attractive utility investment.
Based on the above discussion, Southwest Gas currently has an edge over ONE Gas, though both presently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.