Contrasting Naturgy Energy Group (OTCMKTS:GASNY) & ENN Energy (OTCMKTS:XNGSF)

Naturgy Energy Group (OTCMKTS:GASNY) and ENN Energy (OTCMKTS:XNGSF) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Dividends

Naturgy Energy Group pays an annual dividend of $0.25 per share and has a dividend yield of 4.0%. ENN Energy pays an annual dividend of $0.39 per share and has a dividend yield of 7.0%. 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. ENN Energy pays out 25.1% of its earnings in the form of a dividend. ENN Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Naturgy Energy Group and ENN Energy’s 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
ENN Energy	N/A	N/A	N/A

Insider and Institutional Ownership

0.0% of Naturgy Energy Group shares are held by institutional investors. Comparatively, 40.4% of ENN Energy shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Naturgy Energy Group and ENN Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Naturgy Energy Group	0	0	3	1	3.25
ENN Energy	0	0	0	0	0.00

Earnings & Valuation

This table compares Naturgy Energy Group and ENN Energy”s revenue, earnings per share 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	20.06
ENN Energy	N/A	N/A	N/A	$1.54	3.56

ENN Energy 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.

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 ENN Energy

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructure in the People's Republic of China. It operates through Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Value Added Business segments. The company also distributes and sells piped gas, liquefied natural gas (LNG), and other multi-energy products; operates vehicle gas refuelling stations; and provides services related to low-carbon integrated solutions. In addition, it is involved in the integrated energy business; retail of gas pipelines, and related materials and equipment; transportation of oil products and gas; and sourcing and sell of LNG, as well as wholesale and retail of LNG, CNG, gas equipment, appliances, and others; and provision of financial services. The company serves residential, commercial, and industrial customers. ENN Energy Holdings Limited was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. The company was founded in 1989 and is headquartered in Langfang, China.