Analyzing Snam (OTCMKTS:SNMRF) & Superior Plus (OTCMKTS:SUUIF)

Snam (OTCMKTS:SNMRF) and Superior Plus (OTCMKTS:SUUIF) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Snam and Superior Plus’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snam	N/A	N/A	N/A	$0.33	14.82
Superior Plus	N/A	N/A	N/A	$0.19	37.74

Snam is trading at a lower price-to-earnings ratio than Superior Plus, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Snam and Superior Plus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snam	N/A	N/A	N/A
Superior Plus	N/A	N/A	N/A

Institutional & Insider Ownership

22.6% of Snam shares are held by institutional investors. Comparatively, 27.9% of Superior Plus shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Snam and Superior Plus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snam	0	2	2	0	2.50
Superior Plus	0	0	3	0	3.00

Superior Plus has a consensus target price of $14.75, suggesting a potential upside of 103.73%. Given Superior Plus’ stronger consensus rating and higher probable upside, analysts plainly believe Superior Plus is more favorable than Snam.

Dividends

Snam pays an annual dividend of $0.20 per share and has a dividend yield of 4.1%. Superior Plus pays an annual dividend of $0.60 per share and has a dividend yield of 8.3%. Snam pays out 61.1% of its earnings in the form of a dividend. Superior Plus pays out 312.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Superior Plus beats Snam on 6 of the 8 factors compared between the two stocks.

About Snam

Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure in Italy. The company operates through Transportation, Storage, Regasification, Energy Transition, and other segments. It provides natural gas transportation and dispatching services; and owns and manages 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 in Lombardy, Emilia-Romagna, and in Abruzzo. In addition, it engages in the rental and maintenance of fibre optic telecommunications cables, as well as energy efficiency solutions for residential, industrial, tertiary, and public administration sectors; and management of biogas and biomethane plants. Further, the company offers engineering and project management services. It also operates in Albania, Saudi Arabia, Austria, China, Egypt, the United Arab Emirates, France, Greece, the United Kingdom, and the United States. 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.

About Superior Plus

Superior Plus Corp. distributes and markets propane and distillates in both the United States and Canada. It operates through three segments: The United States Retail Propane Distribution (U.S. Propane); Canadian Retail Propane Distribution (Canadian Propane); and North American Wholesale Propane Distribution (Wholesale Propane). The U.S. Propane Distribution segment distributes propane gas and liquid fuels primarily in the Eastern United States, the Midwest, and California to retail customers, including residential and commercial customers. The Canadian Propane segment distributes propane gas and liquid fuels across Canada to retail customers, including residential and commercial customers. The Wholesale Propane segment supplies propane gas for the Canadian Propane and the U.S. Propane segments, as well as propane and other natural gas liquids to third-party wholesale customers in Canada and the United States. Superior Plus Corp. was incorporated in 1989 and is based in Toronto, Canada.