Snam (SNMRF) & Its Peers Critical Analysis

Snam (OTCMKTS:SNMRF) is one of 46 public companies in the “Gas Utilities” industry, but how does it weigh in compared to its peers? We will compare Snam to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Snam and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snam	2	2	1	0	1.80
Snam Competitors	457	1369	1145	53	2.26

As a group, “Gas Utilities” companies have a potential upside of 9.64%. Given Snam’s peers stronger consensus rating and higher possible upside, analysts clearly believe Snam has less favorable growth aspects than its peers.

Dividends

Snam pays an annual dividend of $0.20 per share and has a dividend yield of 3.0%. Snam pays out 61.1% of its earnings in the form of a dividend. As a group, “Gas Utilities” companies pay a dividend yield of 12.0% and pay out 17.4% of their earnings in the form of a dividend. Snam lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Snam and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Snam	N/A	N/A	20.11
Snam Competitors	$2.96 billion	$316.42 million	36.62

Snam’s peers have higher revenue and earnings than Snam. Snam is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

22.6% of Snam shares are held by institutional investors. Comparatively, 52.7% of shares of all “Gas Utilities” companies are held by institutional investors. 10.3% of shares of all “Gas Utilities” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Snam and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snam	N/A	N/A	N/A
Snam Competitors	20.21%	7.87%	3.65%

Summary

Snam peers beat Snam on 13 of the 13 factors compared.

Snam Company Profile

Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure. The company operates through Transportation, Storage, Regasification, Energy Transition, and other segments. It provides natural gas transportation and dispatching services; and owns and manages liquified natural gas (LNG) regasification plants. The company also offers natural gas storage services through an integrated group of infrastructure comprising deposits, wells, gas treatment and compression plants, and the operational dispatching systems; and operates storage concessions located in Lombardy, Emilia-Romagna, and Abruzzo. In addition, it provides energy efficiency solutions for companies, condominiums, tertiary, and public administration sectors; and invests, constructs, develops, and operates biogas and biomethane plants. Further, the company offers engineering support and consulting services in technical and specialized fields; and sells automotive compressed natural gas (CNG) compressors. It operates a natural gas transportation network of approximately 38,000 kilometers in Italy, Austria, Tunisia, Egypt, the United Arab Emirates, France, Greece, and the United Kingdom. The company was formerly known as Snam Rete Gas S.p.A. and changed its name to Snam S.p.A. in January 2012. Snam S.p.A. was founded in 1941 and is headquartered in San Donato Milanese, Italy.