Reviewing PT Perusahaan Gas Negara Tbk (OTCMKTS:PPAAF) and Naturgy Energy Group (OTCMKTS:GASNY)

PT Perusahaan Gas Negara Tbk (OTCMKTS:PPAAF) and Naturgy Energy Group (OTCMKTS:GASNY) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Dividends

PT Perusahaan Gas Negara Tbk pays an annual dividend of $0.01 per share and has a dividend yield of 11.2%. Naturgy Energy Group pays an annual dividend of $0.25 per share and has a dividend yield of 3.9%. PT Perusahaan Gas Negara Tbk pays out 38.7% of its earnings in the form of a dividend. Naturgy Energy Group pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PT Perusahaan Gas Negara Tbk is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares PT Perusahaan Gas Negara Tbk and Naturgy Energy Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT Perusahaan Gas Negara Tbk	N/A	N/A	N/A
Naturgy Energy Group	N/A	N/A	N/A

Insider & Institutional Ownership

21.0% of PT Perusahaan Gas Negara Tbk shares are held by institutional investors. Comparatively, 0.0% of Naturgy Energy Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for PT Perusahaan Gas Negara Tbk and Naturgy Energy Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Perusahaan Gas Negara Tbk	0	0	0	0	0.00
Naturgy Energy Group	0	0	1	1	3.50

Valuation & Earnings

This table compares PT Perusahaan Gas Negara Tbk and Naturgy Energy Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT Perusahaan Gas Negara Tbk	N/A	N/A	N/A	$0.04	3.44
Naturgy Energy Group	N/A	N/A	N/A	$0.31	20.29

PT Perusahaan Gas Negara Tbk is trading at a lower price-to-earnings ratio than Naturgy Energy Group, indicating that it is currently the more affordable of the two stocks.

Summary

Naturgy Energy Group beats PT Perusahaan Gas Negara Tbk on 5 of the 8 factors compared between the two stocks.

About PT Perusahaan Gas Negara Tbk

PT Perusahaan Gas Negara Tbk, together with its subsidiaries, engages in the transmission and distribution of natural gas in Indonesia. It operates through three segments: Gas Trading and Transmission, Exploration and Production of Oil and Gas, and Other Operations. The company is involved in the exploration, exploitation, and business development in oil and gas; and trading and transmission of gas, and processing of liquefied natural gas to industrial, commercial and household customers. It also provides fiber optic rental for network services; construction and maintenance services to the customers; management and leasing services of buildings and equipment; engineering and consultancy services; telecommunications; and electricity services. The company was founded in 1859 and is headquartered in Jakarta, Indonesia. PT Perusahaan Gas Negara Tbk operates as a subsidiary of PT Pertamina (Persero).

About Naturgy Energy Group

Naturgy Energy Group, S.A., together with its subsidiaries, engages in the supply, liquefaction, regasification, transport, storage, distribution, and sale of natural gas. It operates through Distribution Networks and Energy Markets segments. The company engages in the regulated gas and electricity distribution; sale of liquefied natural gas and the maritime transport business; management conventional thermal generation facilities; and generation and sale of electricity through wind, mini-hydro, solar, and cogeneration sources, as well as provision of supply management services. It serves in Spain, Australia, the United States, Argentina, Brazil, Chile, Mexico, Panama, the rest of Latin America, and internationally. The company was formerly known as Gas Natural SDG, S.A. and changed its name to Naturgy Energy Group, S.A. in June 2018. Naturgy Energy Group, S.A. was incorporated in 1843 and is based in Madrid, Spain.