Contrasting ENN Energy (OTCMKTS:XNGSY) and NewJersey Resources (NYSE:NJR)

ENN Energy (OTCMKTS:XNGSY) and NewJersey Resources (NYSE:NJR) are both mid-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Volatility & Risk

ENN Energy has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, NewJersey Resources has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for ENN Energy and NewJersey Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENN Energy	0	0	0	0	0.00
NewJersey Resources	0	4	2	0	2.33

NewJersey Resources has a consensus target price of $51.4286, indicating a potential upside of 10.10%. Given NewJersey Resources’ stronger consensus rating and higher probable upside, analysts plainly believe NewJersey Resources is more favorable than ENN Energy.

Earnings & Valuation

This table compares ENN Energy and NewJersey Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENN Energy	$15.28 billion	0.60	$832.79 million	N/A	N/A
NewJersey Resources	$1.80 billion	2.61	$289.77 million	$4.09	11.42

ENN Energy has higher revenue and earnings than NewJersey Resources.

Dividends

ENN Energy pays an annual dividend of $2.02 per share and has a dividend yield of 6.2%. NewJersey Resources pays an annual dividend of $1.80 per share and has a dividend yield of 3.9%. NewJersey Resources pays out 44.0% of its earnings in the form of a dividend. NewJersey Resources has raised its dividend for 29 consecutive years.

Profitability

This table compares ENN Energy and NewJersey Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENN Energy	N/A	N/A	N/A
NewJersey Resources	19.64%	17.08%	5.60%

Institutional and Insider Ownership

71.0% of NewJersey Resources shares are held by institutional investors. 0.7% of NewJersey Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

NewJersey Resources beats ENN Energy on 11 of the 15 factors compared between the two stocks.

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.

About NewJersey Resources

New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 576,000 customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates clean energy projects, including commercial and residential solar installation situated in New Jersey, Rhode Island, New York, Connecticut, Michigan, and Indiana. The Energy Services segment maintains and operates natural gas transportation and storage capacity contracts, as well as provides physical wholesale energy, retail energy and energy management services in the United States and Canada. The Storage and Transportation segment invests in invests in energy-related ventures. It provides heating, ventilation, and cooling services; sales and installation of appliances; offers solar equipment installation, and plumbing repair and installation services; and holds commercial real estate properties. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.