Head-To-Head Survey: ENN ENERGY HOLD/ADR (XNGSY) and Southwest Gas (SWX)

ENN ENERGY HOLD/ADR (OTCMKTS:XNGSY) and Southwest Gas (NYSE:SWX) are both mid-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Institutional & Insider Ownership

0.0% of ENN ENERGY HOLD/ADR shares are owned by institutional investors. Comparatively, 83.7% of Southwest Gas shares are owned by institutional investors. 1.0% of Southwest Gas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares ENN ENERGY HOLD/ADR and Southwest Gas’ 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
Southwest Gas 7.39% 10.01% 2.95%

Valuation & Earnings

This table compares ENN ENERGY HOLD/ADR and Southwest Gas’ 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 1.31 $414.69 million $1.53 22.59
Southwest Gas $2.55 billion 1.61 $193.84 million $3.62 22.89

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

Volatility & Risk

ENN ENERGY HOLD/ADR has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Southwest Gas has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Dividends

ENN ENERGY HOLD/ADR pays an annual dividend of $0.50 per share and has a dividend yield of 1.4%. Southwest Gas pays an annual dividend of $2.08 per share and has a dividend yield of 2.5%. ENN ENERGY HOLD/ADR pays out 32.7% of its earnings in the form of a dividend. Southwest Gas pays out 57.5% 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. Southwest Gas has increased its dividend for 6 consecutive years. Southwest Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ENN ENERGY HOLD/ADR and Southwest Gas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENN ENERGY HOLD/ADR 0 0 0 0 N/A
Southwest Gas 1 3 1 0 2.00

Southwest Gas has a consensus price target of $77.40, indicating a potential downside of 6.58%. Given Southwest Gas’ higher probable upside, analysts clearly believe Southwest Gas is more favorable than ENN ENERGY HOLD/ADR.

Summary

Southwest Gas beats ENN ENERGY HOLD/ADR on 12 of the 16 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.

Southwest Gas Company Profile

Southwest Gas Holdings, Inc., through its subsidiaries, purchases, distributes, and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Operations and Construction Services segments. As of December 31, 2017, it had 2,015,000 residential, commercial, industrial, and other natural gas customers. The company installs, replaces, repairs, and maintains energy distribution systems from the town border station to the end-user; and develops industrial construction solutions. The company also serves customers in the provinces of British Columbia and Ontario in Canada. Southwest Gas Holdings, Inc. was founded in 1931 and is headquartered in Las Vegas, Nevada.

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