Critical Comparison: ENN Energy (OTCMKTS:XNGSY) and ONE Gas (NYSE:OGS)

ONE Gas (NYSE:OGS) and ENN Energy (OTCMKTS:XNGSY) are both mid-cap utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Dividends

ONE Gas pays an annual dividend of $2.68 per share and has a dividend yield of 3.7%. ENN Energy pays an annual dividend of $1.02 per share and has a dividend yield of 3.0%. ONE Gas pays out 64.7% of its earnings in the form of a dividend. ONE Gas has increased its dividend for 2 consecutive years. ONE Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

88.7% of ONE Gas shares are held by institutional investors. 1.4% of ONE Gas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares ONE Gas and ENN Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ONE Gas	10.75%	8.15%	2.98%
ENN Energy	N/A	N/A	N/A

Earnings & Valuation

This table compares ONE Gas and ENN Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ONE Gas	$2.08 billion	2.09	$222.85 million	$4.14	17.57
ENN Energy	$15.28 billion	0.62	$832.79 million	N/A	N/A

ENN Energy has higher revenue and earnings than ONE Gas.

Analyst Ratings

This is a breakdown of recent ratings and price targets for ONE Gas and ENN Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONE Gas	1	3	3	0	2.29
ENN Energy	0	0	0	0	0.00

ONE Gas currently has a consensus price target of $77.64, indicating a potential upside of 6.73%. Given ONE Gas’ stronger consensus rating and higher probable upside, equities analysts clearly believe ONE Gas is more favorable than ENN Energy.

Risk & Volatility

ONE Gas has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, ENN Energy has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Summary

ONE Gas beats ENN Energy on 12 of the 15 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 ENN Energy

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructure in the People's Republic of China. It operates through Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Value Added Business segments. The company also distributes and sells piped gas, liquefied natural gas (LNG), and other multi-energy products; operates vehicle gas refuelling stations; and provides services related to low-carbon integrated solutions. In addition, it is involved in the integrated energy business; retail of gas pipelines, and related materials and equipment; transportation of oil products and gas; and sourcing and sell of LNG, as well as wholesale and retail of LNG, CNG, gas equipment, appliances, and others; and provision of financial services. The company serves residential, commercial, and industrial customers. ENN Energy Holdings Limited was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. The company was founded in 1989 and is headquartered in Langfang, China.