China Gas (OTCMKTS:CGHLY – Get Free Report) and Southwest Gas (NYSE:SWX – Get Free Report) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Analyst Recommendations
This is a summary of recent ratings for China Gas and Southwest Gas, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Gas | 0 | 0 | 0 | 0 | 0.00 |
| Southwest Gas | 0 | 1 | 6 | 1 | 3.00 |
Southwest Gas has a consensus target price of $98.29, indicating a potential upside of 6.51%. Given Southwest Gas’ stronger consensus rating and higher possible upside, analysts clearly believe Southwest Gas is more favorable than China Gas.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| China Gas | N/A | N/A | N/A |
| Southwest Gas | 31.85% | 6.91% | 2.64% |
Institutional & Insider Ownership
92.8% of Southwest Gas shares are held by institutional investors. 0.6% of Southwest Gas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares China Gas and Southwest Gas”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Gas | N/A | N/A | N/A | N/A | N/A |
| Southwest Gas | $1.94 billion | 3.45 | $439.83 million | $6.90 | 13.37 |
Southwest Gas has higher revenue and earnings than China Gas.
Summary
Southwest Gas beats China Gas on 10 of the 10 factors compared between the two stocks.
About China Gas
China Gas Holdings Limited operates as a gas operator and service provider in the People's Republic of China. The company invests in, constructs, operates, and maintains city and town gas pipelines, gas terminals, storage and transportation facilities, and gas logistics systems; transmits natural gas and liquefied petroleum gas (LPG) to residential, industrial, and commercial users; constructs and operates compressed natural gas/liquefied natural gas refilling stations; and develops technologies related to natural gas and LPG. It is also involved in the investment in petrochemical facilities of storage and transportation; producing, storing, and selling of LPG and chemical products, as well as propane and butane; CBM business; exploration and production of coal bed methane; and gas station administration services. In addition, the company offers treasury, management, consultancy, and procurement services; and engages in wholesale and retail of household equipment, electric appliances, kitchen appliances, and others. Further, it is involved in the development and investment in clean energy; wholesale and trading of natural gas and liquefied natural gas; and sale of electricity, as well as develops, produces, and sells gas meters, and other utility systems. Additionally, the company offers gas stoves, water heater, and wall-mounting heaters; safety products, such as pipes, valves, and alarms; food staples, and cooking ingredients. Furthermore, the company engages in the wholesale, retail, installs, and maintains of household equipment, electric appliances, and kitchen appliances, as well as involved in investment holding and distributes heating services. China Gas Holdings Limited was incorporated in 1995 and is headquartered in Wan Chai, Hong Kong.
About Southwest Gas
Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2023, it had 2,226,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.
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