Hong Kong and China Gas (OTCMKTS:HOKCY) versus GeoPark (NYSE:GPRK) Head to Head Review

Hong Kong and China Gas (OTCMKTS:HOKCY) and GeoPark (NYSE:GPRK) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Institutional & Insider Ownership

68.2% of GeoPark shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Hong Kong and China Gas and GeoPark’s gross 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	$7.28 billion	N/A	$788.99 million	N/A	N/A
GeoPark	$756.63 million	0.71	$111.07 million	$1.95	4.96

Hong Kong and China Gas has higher revenue and earnings than GeoPark.

Risk and Volatility

Hong Kong and China Gas has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, GeoPark has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Hong Kong and China Gas and GeoPark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hong Kong and China Gas	0	0	0	0	N/A
GeoPark	0	0	3	0	3.00

GeoPark has a consensus target price of $13.17, indicating a potential upside of 36.09%. Given GeoPark’s higher probable upside, analysts clearly believe GeoPark is more favorable than Hong Kong and China Gas.

Dividends

Hong Kong and China Gas pays an annual dividend of $0.02 per share and has a dividend yield of 2.8%. GeoPark pays an annual dividend of $0.54 per share and has a dividend yield of 5.6%. GeoPark pays out 27.7% of its earnings in the form of a dividend. GeoPark has raised its dividend for 3 consecutive years. GeoPark is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Hong Kong and China Gas and GeoPark’s 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
GeoPark	14.69%	79.78%	12.43%

Summary

GeoPark beats Hong Kong and China Gas on 9 of the 12 factors compared between the two stocks.

About Hong Kong and China Gas

The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas, water supply and energy services in Hong Kong and Mainland China. It is involved in the provision of smart energy, piped city-gas, upstream and midstream projects, water supply and wastewater treatment, urban waste resource utilization, and natural gas filling stations, as well as new energy exploration and utilization activities. The company develops new energy projects that are low in emissions and pollution, which includes clean coal chemical business, liquefaction of methane, etc., as well as supplies town gas. It also provides network connectivity, data center, and ICT services, as well as engineering, procurement, and construction services. 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 domestic sewage and industrial wastewater treatment activities. Additionally, the company manufactures polyethylene piping and fittings; as well as engages in the software development, solution implementation, and systems integration activities. The Hong Kong and China Gas Company Limited was founded in 1862 and is headquartered in North Point, Hong Kong.

About GeoPark

GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Ecuador. GeoPark Limited has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013. GeoPark Limited was founded in 2002 and is based in Bogotá, Colombia.