Head to Head Review: ENAGAS S A/ADR (OTCMKTS:ENGGY) and Atmos Energy (OTCMKTS:ATO)

ENAGAS S A/ADR (OTCMKTS:ENGGY) and Atmos Energy (NYSE:ATO) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Risk & Volatility

ENAGAS S A/ADR has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Atmos Energy has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Earnings and Valuation

This table compares ENAGAS S A/ADR and Atmos Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ENAGAS S A/ADR $1.53 billion 3.39 $522.74 million N/A N/A
Atmos Energy $3.12 billion 4.03 $603.06 million $4.00 26.82

Atmos Energy has higher revenue and earnings than ENAGAS S A/ADR.

Profitability

This table compares ENAGAS S A/ADR and Atmos Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ENAGAS S A/ADR N/A N/A N/A
Atmos Energy 16.19% 9.60% 4.02%

Insider and Institutional Ownership

0.3% of ENAGAS S A/ADR shares are owned by institutional investors. Comparatively, 82.1% of Atmos Energy shares are owned by institutional investors. 1.4% of Atmos Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ENAGAS S A/ADR and Atmos Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENAGAS S A/ADR 3 0 0 0 1.00
Atmos Energy 1 2 5 0 2.50

Atmos Energy has a consensus target price of $102.75, indicating a potential downside of 4.21%. Given Atmos Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Atmos Energy is more favorable than ENAGAS S A/ADR.

Dividends

ENAGAS S A/ADR pays an annual dividend of $0.74 per share and has a dividend yield of 6.8%. Atmos Energy pays an annual dividend of $2.10 per share and has a dividend yield of 2.0%. Atmos Energy pays out 52.5% of its earnings in the form of a dividend. Atmos Energy has increased its dividend for 36 consecutive years.

Summary

Atmos Energy beats ENAGAS S A/ADR on 13 of the 15 factors compared between the two stocks.

About ENAGAS S A/ADR

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.

About Atmos Energy

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through Distribution, and Pipeline and Storage segments. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states. This segment distributes natural gas to approximately three million residential, commercial, public authority, and industrial customers. As of September 30, 2018, it owned 70,071 miles of underground distribution and transmission mains. The Pipeline and Storage segment engages in the pipeline and storage operations. This segment transports natural gas for third parties and manages five underground storage reservoirs in Texas; and provides ancillary services to the pipeline industry, including parking arrangements, lending, and inventory sales. It owns 5,678 miles of gas transmission lines. The company was founded in 1906 and is headquartered in Dallas, Texas.

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