Atmos Energy (NYSE:ATO – Get Free Report) is one of 46 publicly-traded companies in the “Gas Utilities” industry, but how does it weigh in compared to its rivals? We will compare Atmos Energy to related companies based on the strength of its earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Profitability
This table compares Atmos Energy and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atmos Energy | 28.50% | 9.67% | 4.67% |
| Atmos Energy Competitors | 20.20% | 7.85% | 3.65% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Atmos Energy and its rivals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atmos Energy | 0 | 10 | 3 | 0 | 2.23 |
| Atmos Energy Competitors | 463 | 1405 | 1186 | 56 | 2.27 |
Atmos Energy presently has a consensus target price of $183.27, indicating a potential upside of 6.23%. As a group, “Gas Utilities” companies have a potential upside of 11.76%. Given Atmos Energy’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Atmos Energy has less favorable growth aspects than its rivals.
Dividends
Atmos Energy pays an annual dividend of $4.00 per share and has a dividend yield of 2.3%. Atmos Energy pays out 47.6% of its earnings in the form of a dividend. As a group, “Gas Utilities” companies pay a dividend yield of 12.0% and pay out 17.4% of their earnings in the form of a dividend. Atmos Energy has increased its dividend for 41 consecutive years. Atmos Energy lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Risk and Volatility
Atmos Energy has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Atmos Energy’s rivals have a beta of 0.43, indicating that their average stock price is 57% less volatile than the S&P 500.
Valuation and Earnings
This table compares Atmos Energy and its rivals top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Atmos Energy | $4.70 billion | $1.20 billion | 20.54 |
| Atmos Energy Competitors | $2.95 billion | $316.42 million | 35.03 |
Atmos Energy has higher revenue and earnings than its rivals. Atmos Energy is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Insider & Institutional Ownership
90.2% of Atmos Energy shares are owned by institutional investors. Comparatively, 52.8% of shares of all “Gas Utilities” companies are owned by institutional investors. 0.4% of Atmos Energy shares are owned by insiders. Comparatively, 10.4% of shares of all “Gas Utilities” companies 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.
Summary
Atmos Energy rivals beat Atmos Energy on 8 of the 15 factors compared.
Atmos Energy Company Profile
Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states. This segment distributes natural gas to approximately 3.3 million residential, commercial, public authority, and industrial customers; and owned 73,689 miles of underground distribution and transmission mains. The Pipeline and Storage segment engages in the pipeline and storage operations. This segment transports natural gas for third parties and manages five underground storage facilities in Texas; provides ancillary services customary to the pipeline industry, including parking arrangements, lending, and inventory sales; and owned 5,645 miles of gas transmission lines. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.
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