SJW Group (SJW) vs. Its Peers Head to Head Review

SJW Group (NYSE: SJW) is one of 15 public companies in the “Water supply” industry, but how does it compare to its peers? We will compare SJW Group to similar companies based on the strength of its institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Risk and Volatility

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SJW Group has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, SJW Group’s peers have a beta of 0.51, meaning that their average stock price is 49% less volatile than the S&P 500.

Dividends

SJW Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.1%. SJW Group pays out 49.6% of its earnings in the form of a dividend. As a group, “Water supply” companies pay a dividend yield of 2.2% and pay out 53.9% of their earnings in the form of a dividend. SJW Group has raised its dividend for 50 consecutive years.

Earnings and Valuation

This table compares SJW Group and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
SJW Group $389.23 million $59.20 million 23.50
SJW Group Competitors $722.21 million $111.68 million 23.06

SJW Group’s peers have higher revenue and earnings than SJW Group. SJW Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for SJW Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SJW Group 0 0 1 0 3.00
SJW Group Competitors 86 221 250 13 2.33

As a group, “Water supply” companies have a potential upside of 5.78%. Given SJW Group’s peers higher possible upside, analysts clearly believe SJW Group has less favorable growth aspects than its peers.

Insider and Institutional Ownership

55.1% of SJW Group shares are owned by institutional investors. Comparatively, 49.2% of shares of all “Water supply” companies are owned by institutional investors. 17.2% of SJW Group shares are owned by company insiders. Comparatively, 11.2% of shares of all “Water supply” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares SJW Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SJW Group 15.21% 10.57% 3.19%
SJW Group Competitors 8.09% 8.85% 2.61%

Summary

SJW Group beats its peers on 9 of the 15 factors compared.

About SJW Group

SJW Group, through its subsidiaries, provides water utility services in the United States. It engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water. The company also provides non-tariffed services, including water system operations, maintenance agreements, and antenna site leases. Its water supply consists of groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from the Santa Clara Valley Water District. The company offers water service to approximately 230,000 connections that serve approximately 1 million people residing in portions of the cities of San Jose and Cupertino, as well as in the cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos; and adjacent unincorporated territories in the County of Santa Clara in the State of California. In addition, it provides water service to approximately 14,000 connections, which serve 42,000 people in a service area comprising 244 square miles in the region between San Antonio and Austin, Texas. Further, the company, through its subsidiary, SJW Land Company, owns undeveloped land in Tennessee; and owns and operates commercial buildings in Tennessee. The company was formerly known as SJW Corp. and changed its name to SJW Group in November 2016. SJW Group was founded in 1866 and is headquartered in San Jose, California.

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