ONE Gas (NYSE:OGS – Get Free Report) and GAIL (India) (OTCMKTS:GAILF – Get Free Report) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Insider and Institutional Ownership
88.7% of ONE Gas shares are owned by institutional investors. Comparatively, 0.4% of GAIL (India) shares are owned by institutional investors. 0.9% of ONE Gas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dividends
ONE Gas pays an annual dividend of $2.72 per share and has a dividend yield of 3.4%. GAIL (India) pays an annual dividend of $60.15 per share and has a dividend yield of 931.0%. ONE Gas pays out 58.6% of its earnings in the form of a dividend. GAIL (India) pays out 26.6% 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. GAIL (India) is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
| 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 | 17.18 |
| GAIL (India) | N/A | N/A | N/A | $226.38 | 0.03 |
ONE Gas has higher revenue and earnings than GAIL (India). GAIL (India) is trading at a lower price-to-earnings ratio than ONE Gas, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for ONE Gas and GAIL (India), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONE Gas | 0 | 6 | 5 | 0 | 2.45 |
| GAIL (India) | 0 | 0 | 0 | 0 | 0.00 |
ONE Gas currently has a consensus price target of $89.70, indicating a potential upside of 12.54%. Given ONE Gas’ stronger consensus rating and higher probable upside, equities research analysts plainly believe ONE Gas is more favorable than GAIL (India).
Profitability
This table compares ONE Gas and GAIL (India)’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% |
| GAIL (India) | N/A | N/A | N/A |
Summary
ONE Gas beats GAIL (India) on 11 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 GAIL (India)
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GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. The company operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments. It is involved in the transmission and marketing of natural gas to the power, fertilizer, industrial, automotive, petrochemicals, and domestic and commercial sectors. The company also markets liquefied petroleum gas (LPG), propane, pentane, naphtha, mixed fuel oil, polyethylene, and polypropylene; and manufactures petrochemicals, such as high-density polyethylene and linear low-density polyethylene under the brand names of G-Lex and G-Lene. In addition, it generates wind and solar power. Further, the company engages in the chartering of LNG vessels. The company was incorporated in 1984 and is based in New Delhi, India.
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