ONE Gas (NYSE:OGS) vs. Naturgy Energy Group (OTCMKTS:GASNY) Financial Comparison

Naturgy Energy Group (OTCMKTS:GASNY) and ONE Gas (NYSE:OGS) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

0.0% of Naturgy Energy Group shares are owned by institutional investors. Comparatively, 88.7% of ONE Gas shares are owned by institutional investors. 0.9% of ONE Gas 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.

Profitability

This table compares Naturgy Energy Group and ONE Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Naturgy Energy Group	N/A	N/A	N/A
ONE Gas	11.77%	8.45%	3.26%

Dividends

Naturgy Energy Group pays an annual dividend of $0.33 per share and has a dividend yield of 4.9%. ONE Gas pays an annual dividend of $2.72 per share and has a dividend yield of 3.5%. Naturgy Energy Group pays out 105.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ONE Gas pays out 61.4% of its earnings in the form of a dividend. ONE Gas has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Naturgy Energy Group and ONE Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Naturgy Energy Group	0	0	3	1	3.25
ONE Gas	1	5	5	0	2.36

ONE Gas has a consensus target price of $89.70, suggesting a potential upside of 15.60%. Given ONE Gas’ higher possible upside, analysts plainly believe ONE Gas is more favorable than Naturgy Energy Group.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Naturgy Energy Group	N/A	N/A	N/A	$0.31	21.50
ONE Gas	$2.43 billion	2.01	$264.22 million	$4.43	17.52

ONE Gas has higher revenue and earnings than Naturgy Energy Group. ONE Gas 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

ONE Gas beats Naturgy Energy Group on 11 of the 15 factors compared between the two stocks.

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.

About ONE Gas

ONE Gas, Inc., together with its subsidiaries, operates as a regulated natural gas distribution company in the United States. The company provides natural gas distribution services to approximately 2.3 million customers in Oklahoma, Kansas, and Texas. It serves residential, commercial, and transportation customers. The company was founded in 1906 and is headquartered in Tulsa, Oklahoma.