Comparing Enagas (OTCMKTS:ENGGY) and MDU Resources Group (NYSE:MDU)

MDU Resources Group (NYSE:MDU) and Enagas (OTCMKTS:ENGGY) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares MDU Resources Group and Enagas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDU Resources Group	9.02%	6.81%	2.64%
Enagas	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and target prices for MDU Resources Group and Enagas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDU Resources Group	0	4	1	0	2.20
Enagas	1	0	0	0	1.00

MDU Resources Group currently has a consensus price target of $21.00, indicating a potential upside of 8.61%. Given MDU Resources Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe MDU Resources Group is more favorable than Enagas.

Earnings and Valuation

This table compares MDU Resources Group and Enagas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDU Resources Group	$1.76 billion	2.25	$281.11 million	$0.83	23.30
Enagas	$979.99 million	4.31	-$323.88 million	N/A	N/A

MDU Resources Group has higher revenue and earnings than Enagas.

Dividends

MDU Resources Group pays an annual dividend of $0.56 per share and has a dividend yield of 2.9%. Enagas pays an annual dividend of $0.28 per share and has a dividend yield of 3.5%. MDU Resources Group pays out 67.5% of its earnings in the form of a dividend. MDU Resources Group has increased its dividend for 1 consecutive years.

Insider & Institutional Ownership

71.4% of MDU Resources Group shares are held by institutional investors. 0.9% of MDU Resources Group shares are held by company insiders. Comparatively, 0.2% of Enagas 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.

Volatility and Risk

MDU Resources Group has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Enagas has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Summary

MDU Resources Group beats Enagas on 12 of the 15 factors compared between the two stocks.

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.

About Enagas

Enagás, S.A. engages in the development, operation, and maintenance of gas infrastructures in Spain and internationally. The company provides gas transportation services through gas pipelines; natural gas regasification services; and operates underground storage facilities. It is involved in the operation and technical management of the basic network and secondary transportation network for natural gas. The company operates approximately 12,000 kilometers of gas pipelines, 19 compressor stations and 416 regulation and metering stations. Enagás, S.A. was founded in 1972 and is based in Madrid, Spain.