Reviewing Hong Kong and China Gas (OTCMKTS:HOKCY) and Viper Energy Partners (NASDAQ:VNOM)

Hong Kong and China Gas (OTCMKTS:HOKCYGet Rating) and Viper Energy Partners (NASDAQ:VNOMGet Rating) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Institutional & Insider Ownership

37.9% of Viper Energy Partners shares are held by institutional investors. 0.3% of Viper Energy Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Hong Kong and China Gas has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Viper Energy Partners has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500.

Dividends

Hong Kong and China Gas pays an annual dividend of $0.02 per share and has a dividend yield of 1.8%. Viper Energy Partners pays an annual dividend of $1.88 per share and has a dividend yield of 6.0%. Viper Energy Partners pays out 241.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Viper Energy Partners has raised its dividend for 2 consecutive years. Viper Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Hong Kong and China Gas and Viper Energy Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hong Kong and China Gas 0 0 0 0 N/A
Viper Energy Partners 0 0 8 0 3.00

Viper Energy Partners has a consensus price target of $31.88, suggesting a potential upside of 1.64%. Given Viper Energy Partners’ higher possible upside, analysts clearly believe Viper Energy Partners is more favorable than Hong Kong and China Gas.

Valuation & Earnings

This table compares Hong Kong and China Gas and Viper Energy Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hong Kong and China Gas $6.89 billion 3.00 $645.46 million N/A N/A
Viper Energy Partners $504.92 million 10.41 $57.94 million $0.78 40.21

Hong Kong and China Gas has higher revenue and earnings than Viper Energy Partners.

Profitability

This table compares Hong Kong and China Gas and Viper Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hong Kong and China Gas N/A N/A N/A
Viper Energy Partners 11.48% 2.21% 1.65%

Summary

Viper Energy Partners beats Hong Kong and China Gas on 11 of the 14 factors compared between the two stocks.

Hong Kong and China Gas Company Profile (Get Rating)

The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas in Hong Kong and Mainland China. It is involved in the provision of liquefied natural gas, methanol, and coal and other chemicals; conversion and utilization of biomass, and industrial and agricultural waste; and operation of natural gas refilling stations, piped city-gas projects, upstream and midstream developments, water and wastewater treatment projects, energy exploration and utilization ventures, and aviation fuel facilities. The company supplies town gas to approximately 1.9 million customers. It also provides network connectivity, and data center and cloud computing services; and engages in the software development, solution implementation, and systems integration activities. In addition, the company offers consultancy and engineering contractor services, including utilities installation, infrastructure construction, and civil and building services engineering for public and private projects; and designs and manufactures gas meters and metering systems. Further, it is involved in water supply and wastewater treatment serving 2.4 million customers. Additionally, the company manufactures polyethylene piping and fittings; and engages in the customers center, café, restaurant, retail sale, automatic meter reading system development, laboratory testing, payment gateway and related, project management, landfill gas project, financing, logistics, oil, research and development, property development, and securities investment activities. The Hong Kong and China Gas Company Limited was founded in 1862 and is headquartered in North Point, Hong Kong.

Viper Energy Partners Company Profile (Get Rating)

Viper Energy Partners LP owns, acquires, and exploits oil and natural gas properties in North America. As of December 31, 2021, it had mineral interests in 27,027 net royalty acres in the Permian Basin and Eagle Ford Shale; and estimated proved oil and natural gas reserves of 127,888 thousand barrels of crude oil equivalent. Viper Energy Partners GP LLC operates as the general partner of the company. The company was founded in 2013 and is based in Midland, Texas. Viper Energy Partners LP is a subsidiary of Diamondback Energy, Inc.

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