ONE Gas (NYSE:OGS – Get Free Report) and ENN Energy (OTCMKTS:XNGSF – Get Free Report) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.
Insider & Institutional Ownership
88.7% of ONE Gas shares are owned by institutional investors. Comparatively, 40.4% of ENN Energy shares are owned by institutional investors. 0.9% of ONE Gas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares ONE Gas and ENN Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ONE Gas | $2.43 billion | 2.08 | $264.22 million | $4.64 | 17.32 |
| ENN Energy | N/A | N/A | N/A | $1.54 | 4.06 |
ONE Gas has higher revenue and earnings than ENN Energy. ENN Energy is trading at a lower price-to-earnings ratio than ONE Gas, 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%. ENN Energy pays an annual dividend of $0.39 per share and has a dividend yield of 6.2%. ONE Gas pays out 58.6% of its earnings in the form of a dividend. ENN Energy pays out 25.1% 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 raised its dividend for 2 consecutive years. ENN Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current ratings for ONE Gas and ENN Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONE Gas | 0 | 6 | 5 | 0 | 2.45 |
| ENN Energy | 0 | 0 | 0 | 0 | 0.00 |
ONE Gas currently has a consensus price target of $89.70, indicating a potential upside of 11.63%. Given ONE Gas’ stronger consensus rating and higher probable upside, research analysts plainly believe ONE Gas is more favorable than ENN Energy.
Profitability
This table compares ONE Gas and ENN Energy’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% |
| ENN Energy | N/A | N/A | N/A |
Summary
ONE Gas beats ENN Energy 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 ENN Energy
ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructure in the People's Republic of China. It operates through Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Value Added Business segments. The company also distributes and sells piped gas, liquefied natural gas (LNG), and other multi-energy products; operates vehicle gas refuelling stations; and provides services related to low-carbon integrated solutions. In addition, it is involved in the integrated energy business; retail of gas pipelines, and related materials and equipment; transportation of oil products and gas; and sourcing and sell of LNG, as well as wholesale and retail of LNG, CNG, gas equipment, appliances, and others; and provision of financial services. The company serves residential, commercial, and industrial customers. ENN Energy Holdings Limited was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. The company was founded in 1989 and is headquartered in Langfang, China.
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