Critical Review: NewJersey Resources (NYSE:NJR) and EverGen Infrastructure (OTCMKTS:EVGIF)

EverGen Infrastructure (OTCMKTS:EVGIF) and NewJersey Resources (NYSE:NJR) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Institutional & 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares EverGen Infrastructure and NewJersey Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EverGen Infrastructure	N/A	N/A	N/A	N/A	N/A
NewJersey Resources	$2.04 billion	2.67	$335.63 million	$3.62	14.78

NewJersey Resources has higher revenue and earnings than EverGen Infrastructure.

Analyst Recommendations

This is a summary of recent ratings for EverGen Infrastructure and NewJersey Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EverGen Infrastructure	0	0	0	0	0.00
NewJersey Resources	0	1	3	1	3.00

NewJersey Resources has a consensus target price of $57.83, indicating a potential upside of 8.12%. Given NewJersey Resources’ stronger consensus rating and higher possible upside, analysts clearly believe NewJersey Resources is more favorable than EverGen Infrastructure.

Profitability

This table compares EverGen Infrastructure and NewJersey Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EverGen Infrastructure	N/A	N/A	N/A
NewJersey Resources	16.42%	14.46%	4.67%

Summary

NewJersey Resources beats EverGen Infrastructure on 10 of the 10 factors compared between the two stocks.

About EverGen Infrastructure

EverGen Infrastructure Corp. acquires, develops, builds, owns, and operates a portfolio of renewable natural gas (RNG), waste to energy, and related infrastructure projects in Canada and North America. It operates through RNG production; and Organic Waste and Composting segments. The company operates the Fraser Valley Biogas project, an anaerobic digestion facility that utilizes local agriculture and commercial food processing waste to generate renewable natural gas and renewable fertilizer; and Sea to Sky Soils project, which processes organics to produce stable compost. It also operates the Pacific Coast Renewables, GrowTEC, and Radius projects. In addition, the company sells RNG, electricity, and organic compost and soil. EverGen Infrastructure Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.

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.