Head to Head Contrast: ENN ENERGY HOLD/ADR (XNGSY) & RGC Resources (RGCO)

ENN ENERGY HOLD/ADR (OTCMKTS:XNGSY) and RGC Resources (NASDAQ:RGCO) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares ENN ENERGY HOLD/ADR and RGC Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ENN ENERGY HOLD/ADR N/A N/A N/A
RGC Resources 10.30% 9.31% 3.31%

Dividends

ENN ENERGY HOLD/ADR pays an annual dividend of $0.50 per share and has a dividend yield of 1.4%. RGC Resources pays an annual dividend of $0.62 per share and has a dividend yield of 2.2%. ENN ENERGY HOLD/ADR pays out 32.7% of its earnings in the form of a dividend. RGC Resources pays out 72.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RGC Resources has raised its dividend for 5 consecutive years. RGC Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares ENN ENERGY HOLD/ADR and RGC Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ENN ENERGY HOLD/ADR $7.14 billion 1.36 $414.69 million $1.53 23.37
RGC Resources $62.30 million 3.67 $6.23 million $0.86 33.26

ENN ENERGY HOLD/ADR has higher revenue and earnings than RGC Resources. ENN ENERGY HOLD/ADR is trading at a lower price-to-earnings ratio than RGC Resources, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.0% of ENN ENERGY HOLD/ADR shares are owned by institutional investors. 8.9% of RGC Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for ENN ENERGY HOLD/ADR and RGC Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENN ENERGY HOLD/ADR 0 0 0 0 N/A
RGC Resources 0 2 0 0 2.00

RGC Resources has a consensus target price of $27.00, indicating a potential downside of 5.59%. Given RGC Resources’ higher probable upside, analysts clearly believe RGC Resources is more favorable than ENN ENERGY HOLD/ADR.

Volatility & Risk

ENN ENERGY HOLD/ADR has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, RGC Resources has a beta of -0.14, meaning that its stock price is 114% less volatile than the S&P 500.

Summary

RGC Resources beats ENN ENERGY HOLD/ADR on 9 of the 15 factors compared between the two stocks.

ENN ENERGY HOLD/ADR Company Profile

ENN Energy Holdings Limited, an investment holding company, engages in the investment in, construction, operation, and management of gas pipeline infrastructures, vehicle and ship refuelling stations, and integrated energy stations in the People's Republic of China. It operates through Gas Connection, Sales of Piped Gas, Vehicle Gas Refueling Stations, Wholesale of Gas, Sales of Integrated Energy and Services, Sales of Gas Appliances, and Sales of Material segments. The company also sells and distributes piped gas, liquefied natural gas, and other multi-energy products; and provides other services in relation to energy supply, as well as engages in energy trading business. In addition, it retails gas pipelines, and related materials and equipment; transports oil products and gas; and sources and sells compressed pipeline gas. Further, ENN Energy Holdings Limited provides financial services. As of December 31, 2017, the company operated a total of 325 CNG refueling stations, 281 LNG refueling stations, and franchised 266 refueling stations. As of the above date, it provided piped natural gas connections for 2,074,270 residential households and 23,200 commercial/industrial customers. The company was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. ENN Energy Holdings Limited was founded in 1992 and is headquartered in Langfang, China.

RGC Resources Company Profile

RGC Resources, Inc., through its subsidiaries, operates as an energy services company. The company sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. It also provides various unregulated services. The company operates approximately 1,135 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility located in Botetourt County, as well as owns and operates 8 metering stations. RGC Resources, Inc. was founded in 1912 and is based in Roanoke, Virginia.

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