Financial Comparison: Hong Kong & China Gas (OTCMKTS:HOKCY) vs. MDU Resources Group (NYSE:MDU)

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

Profitability

This table compares Hong Kong & China Gas and MDU Resources Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hong Kong & China Gas	N/A	N/A	N/A
MDU Resources Group	8.25%	8.29%	3.20%

Dividends

Hong Kong & China Gas pays an annual dividend of $0.02 per share and has a dividend yield of 2.4%. MDU Resources Group pays an annual dividend of $0.56 per share and has a dividend yield of 3.2%. MDU Resources Group pays out 52.8% of its earnings in the form of a dividend. MDU Resources Group has increased its dividend for 1 consecutive years. MDU Resources Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

71.4% of MDU Resources Group shares are owned by institutional investors. 0.9% of MDU Resources Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Hong Kong & China Gas has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, MDU Resources Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Hong Kong & China Gas and MDU Resources Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hong Kong & China Gas	0	0	0	0	0.00
MDU Resources Group	0	0	3	0	3.00

MDU Resources Group has a consensus target price of $18.67, indicating a potential upside of 5.55%. Given MDU Resources Group’s stronger consensus rating and higher possible upside, analysts plainly believe MDU Resources Group is more favorable than Hong Kong & China Gas.

Valuation & Earnings

This table compares Hong Kong & China Gas and MDU Resources Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hong Kong & China Gas	$7.11 billion	2.19	$732.21 million	N/A	N/A
MDU Resources Group	$1.76 billion	2.06	$281.11 million	$1.06	16.68

Hong Kong & China Gas has higher revenue and earnings than MDU Resources Group.

Summary

MDU Resources Group beats Hong Kong & China Gas on 11 of the 15 factors compared between the two stocks.

About Hong Kong & 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 MDU Resources Group

MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. It operates through four segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming; and operates 3,400 miles of transmission lines, 4,800 miles of distribution lines, and 82 transmission and 298 distribution substations. The Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and supplies related value-added services. The Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. The Construction Services segment offers electrical and mechanical contracting services, including the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping, and services; transmission and distribution contracting services, comprise construction and maintenance of overhead and underground electrical, and gas and communication infrastructure; and manufactures and supplies transmission and distribution lines construction equipment and tools. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. MDU Resources Group, Inc. was incorporated in 1924 and is headquartered in Bismarck, North Dakota.