ATO vs NJR

For growth investors, New Jersey Resources Corporation (NJR) is the stronger pick with 13.

9% revenue growth year-over-year, versus 12. 9% for Atmos Energy Corporation (ATO). New Jersey Resources Corporation (NJR) offers the better valuation at 16. 5x trailing P/E (16. 2x forward), making it the more compelling value choice. Analysts rate New Jersey Resources Corporation (NJR) a "Buy" — based on 16 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, New Jersey Resources Corporation (NJR) is the cheapest at 16.

5x versus Atmos Energy Corporation at 24. 7x. On forward P/E, New Jersey Resources Corporation is actually cheaper at 16. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: New Jersey Resources Corporation wins at 1. 14x versus Atmos Energy Corporation's 2. 52x — a reasonable growth-adjusted valuation.

Over the past 5 years, Atmos Energy Corporation (ATO) delivered a total return of +93.

7%, compared to +46. 8% for New Jersey Resources Corporation (NJR). Over 10 years, the gap is even starker: ATO returned +185. 9% versus NJR's +89. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), New Jersey Resources Corporation (NJR) is the lower-risk stock at -0.

13β versus Atmos Energy Corporation's -0. 00β — meaning ATO is approximately -97% more volatile than NJR relative to the S&P 500. On balance sheet safety, Atmos Energy Corporation (ATO) carries a lower debt/equity ratio of 69% versus 158% for New Jersey Resources Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), New Jersey Resources Corporation (NJR) is pulling ahead at 13.

9% versus 12. 9% for Atmos Energy Corporation (ATO). On earnings-per-share growth, the picture is similar: New Jersey Resources Corporation grew EPS 14. 0% year-over-year, compared to 9. 2% for Atmos Energy Corporation. Over a 3-year CAGR, ATO leads at 3. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Atmos Energy Corporation (ATO) is the more profitable company, earning 25.

5% net margin versus 16. 5% for New Jersey Resources Corporation — meaning it keeps 25. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ATO leads at 33. 2% versus 21. 4% for NJR. At the gross margin level — before operating expenses — ATO leads at 52. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, New Jersey Resources Corporation (NJR) is the more undervalued stock at a PEG of 1. 14x versus Atmos Energy Corporation's 2. 52x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, New Jersey Resources Corporation (NJR) trades at 16. 2x forward P/E versus 22. 2x for Atmos Energy Corporation — 6. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NJR: 1. 6% to $55. 75.

All stocks in this comparison pay dividends.

New Jersey Resources Corporation (NJR) offers the highest yield at 3. 3%, versus 1. 9% for Atmos Energy Corporation (ATO).

For long-horizon retirement investors, New Jersey Resources Corporation (NJR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

13), 3. 3% yield). Both have compounded well over 10 years (NJR: +89. 9%, ATO: +185. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ATO is a mid-cap quality compounder stock; NJR is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.