Analyzing Hong Kong & China Gas (OTCMKTS:HOKCY) & Chesapeake Utilities (NYSE:CPK)

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

Earnings and Valuation

This table compares Chesapeake Utilities and Hong Kong & China Gas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Utilities	$85.43 billion	0.04	$118.60 million	$5.65	24.29
Hong Kong & China Gas	$7.11 billion	2.28	$732.21 million	N/A	N/A

Hong Kong & China Gas has lower revenue, but higher earnings than Chesapeake Utilities.

Profitability

This table compares Chesapeake Utilities and Hong Kong & China Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Utilities	14.89%	9.20%	3.62%
Hong Kong & China Gas	N/A	N/A	N/A

Dividends

Chesapeake Utilities pays an annual dividend of $2.74 per share and has a dividend yield of 2.0%. Hong Kong & China Gas pays an annual dividend of $0.02 per share and has a dividend yield of 2.3%. Chesapeake Utilities pays out 48.5% of its earnings in the form of a dividend. Chesapeake Utilities has increased its dividend for 22 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for Chesapeake Utilities and Hong Kong & China Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Utilities	0	2	1	1	2.75
Hong Kong & China Gas	0	0	0	0	0.00

Chesapeake Utilities currently has a consensus target price of $141.00, indicating a potential upside of 2.75%. Given Chesapeake Utilities’ stronger consensus rating and higher probable upside, research analysts clearly believe Chesapeake Utilities is more favorable than Hong Kong & China Gas.

Volatility and Risk

Chesapeake Utilities has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Hong Kong & China Gas has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Insider and Institutional Ownership

83.1% of Chesapeake Utilities shares are held by institutional investors. 2.7% of Chesapeake Utilities shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Chesapeake Utilities beats Hong Kong & China Gas on 12 of the 16 factors compared between the two stocks.

About Chesapeake Utilities

Chesapeake Utilities Corporation operates as an energy delivery company. The company operates through two segments, Regulated Energy and Unregulated Energy. The Regulated Energy segment natural gas distribution operations in central and southern Delaware, Maryland's eastern shore, and Florida; regulated natural gas transmission in the Delmarva Peninsula, Ohio, and Florida; and regulated electric distribution in northeast and northwest Florida. The Unregulated Energy segment engages in the propane operations in the Mid-Atlantic region, North Carolina, South Carolina, and Florida; unregulated natural gas transmission/supply operation in central and eastern Ohio; generation of electricity and steam; provision of compressed natural gas, liquefied natural gas, and renewable natural gas transportation and pipeline solutions primarily to utilities and pipelines in the United States; and sustainable energy investments. This segment is also involved in the provision of other unregulated services, such as energy-related merchandise sale and heating, ventilation and air conditioning, and plumbing and electrical services. Chesapeake Utilities Corporation was founded in 1859 and is headquartered in Dover, Delaware.

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.