Demand for natural gas in the United States is rising due to its cleaner-burning characteristics, creating opportunities for utility companies engaged in its transportation and distribution. Notable players in this sector are Southwest Gas Corporation (SWX) and Spire Inc. (SR), both of which are investing in infrastructure to meet increasing demand. Southwest Gas plans to invest approximately $6.3 billion from 2026 to 2030, while Spire targets $4.8 billion in the same timeframe.
According to Zacks Consensus Estimates, Southwest Gas is projected to have an earnings per share (EPS) of $4.27 in 2026 and $4.85 in 2027, reflecting year-over-year growth rates of 16.99% and 13.63%, respectively. In contrast, Spire’s EPS is expected to be $4 in 2026 and $5.51 in 2027, with a year-over-year decline of 9.91% followed by a growth of 37.75%.
Currently, Southwest Gas boasts a debt-to-capital ratio of 46.11%, lower than Spire’s 69.95%, indicating more effective management of borrowed funds. Both companies maintain a Zacks Rank #3 (Hold), but Southwest Gas shows stronger fundamentals, making it a potentially more attractive investment opportunity in the gas distribution sector.
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