Snam (OTCMKTS:SNMRF – Get Free Report) is one of 46 public companies in the “Gas Utilities” industry, but how does it compare to its peers? We will compare Snam to similar companies based on the strength of its earnings, risk, valuation, analyst recommendations, profitability, institutional ownership and dividends.
Institutional and Insider Ownership
22.6% of Snam shares are held by institutional investors. Comparatively, 52.7% of shares of all “Gas Utilities” companies are held by institutional investors. 10.4% of shares of all “Gas Utilities” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Snam pays an annual dividend of $0.20 per share and has a dividend yield of 3.0%. Snam pays out 61.1% of its earnings in the form of a dividend. As a group, “Gas Utilities” companies pay a dividend yield of 12.2% and pay out 17.5% of their earnings in the form of a dividend. Snam lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Earnings and Valuation
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Snam | N/A | N/A | 20.11 |
| Snam Competitors | $2.95 billion | $316.42 million | 13.30 |
Snam’s peers have higher revenue and earnings than Snam. Snam 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.
Profitability
This table compares Snam and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Snam | N/A | N/A | N/A |
| Snam Competitors | 18.92% | 8.44% | 3.69% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Snam and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Snam | 2 | 2 | 1 | 0 | 1.80 |
| Snam Competitors | 454 | 1355 | 1137 | 53 | 2.26 |
As a group, “Gas Utilities” companies have a potential upside of 11.65%. Given Snam’s peers stronger consensus rating and higher possible upside, analysts clearly believe Snam has less favorable growth aspects than its peers.
Summary
Snam peers beat Snam on 12 of the 13 factors compared.
About Snam
Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure. The company operates through Transportation, Storage, Regasification, Energy Transition, and other segments. It provides natural gas transportation and dispatching services; and owns and manages liquified natural gas (LNG) regasification plants. The company also offers natural gas storage services through an integrated group of infrastructure comprising deposits, wells, gas treatment and compression plants, and the operational dispatching systems; and operates storage concessions located in Lombardy, Emilia-Romagna, and Abruzzo. In addition, it provides energy efficiency solutions for companies, condominiums, tertiary, and public administration sectors; and invests, constructs, develops, and operates biogas and biomethane plants. Further, the company offers engineering support and consulting services in technical and specialized fields; and sells automotive compressed natural gas (CNG) compressors. It operates a natural gas transportation network of approximately 38,000 kilometers in Italy, Austria, Tunisia, Egypt, the United Arab Emirates, France, Greece, and the United Kingdom. The company was formerly known as Snam Rete Gas S.p.A. and changed its name to Snam S.p.A. in January 2012. Snam S.p.A. was founded in 1941 and is headquartered in San Donato Milanese, Italy.
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