ONE Gas (NYSE:OGS – Get Free Report) and Naturgy Energy Group (OTCMKTS:GASNF – Get Free Report) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Analyst Ratings
This is a summary of current ratings and recommmendations for ONE Gas and Naturgy Energy Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONE Gas | 0 | 6 | 5 | 0 | 2.45 |
| Naturgy Energy Group | 0 | 0 | 0 | 0 | 0.00 |
ONE Gas presently has a consensus price target of $89.70, indicating a potential upside of 12.65%. Given ONE Gas’ stronger consensus rating and higher possible upside, equities research analysts plainly believe ONE Gas is more favorable than Naturgy Energy Group.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ONE Gas | $2.43 billion | 2.06 | $264.22 million | $4.64 | 17.16 |
| Naturgy Energy Group | N/A | N/A | N/A | $1.56 | 21.70 |
ONE Gas has higher revenue and earnings than Naturgy Energy Group. ONE Gas is trading at a lower price-to-earnings ratio than Naturgy Energy Group, indicating that it is currently the more affordable of the two stocks.
Dividends
ONE Gas pays an annual dividend of $2.72 per share and has a dividend yield of 3.4%. Naturgy Energy Group pays an annual dividend of $0.71 per share and has a dividend yield of 2.1%. ONE Gas pays out 58.6% of its earnings in the form of a dividend. Naturgy Energy Group pays out 45.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ONE Gas has increased its dividend for 2 consecutive years. ONE Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
88.7% of ONE Gas shares are owned by institutional investors. Comparatively, 9.2% of Naturgy Energy Group shares are owned by institutional investors. 0.9% of ONE Gas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares ONE Gas and Naturgy Energy Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ONE Gas | 12.47% | 8.81% | 3.45% |
| Naturgy Energy Group | N/A | N/A | N/A |
Summary
ONE Gas beats Naturgy Energy Group on 12 of the 14 factors compared between the two stocks.
About ONE Gas
ONE Gas, Inc., together with its subsidiaries, operates as a regulated natural gas distribution company in the United States. The company provides natural gas distribution services to approximately 2.3 million customers in Oklahoma, Kansas, and Texas. It serves residential, commercial, and transportation customers. The company was founded in 1906 and is headquartered in Tulsa, Oklahoma.
About Naturgy Energy Group
Naturgy Energy Group, S.A., together with its subsidiaries, engages in the supply, liquefaction, regasification, transport, storage, distribution, and sale of natural gas. It operates through Distribution Networks and Energy Markets segments. The company engages in the regulated gas and electricity distribution; sale of liquefied natural gas and the maritime transport business; management conventional thermal generation facilities; and generation and sale of electricity through wind, mini-hydro, solar, and cogeneration sources, as well as provision of supply management services. It serves in Spain, Australia, the United States, Argentina, Brazil, Chile, Mexico, Panama, the rest of Latin America, and internationally. The company was formerly known as Gas Natural SDG, S.A. and changed its name to Naturgy Energy Group, S.A. in June 2018. Naturgy Energy Group, S.A. was incorporated in 1843 and is based in Madrid, Spain.
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