Head to Head Comparison: Tokyo Gas Co.,Ltd. (OTCMKTS:TKGSY) & NewJersey Resources (NYSE:NJR)

NewJersey Resources (NYSE:NJR) and Tokyo Gas Co.,Ltd. (OTCMKTS:TKGSY) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Earnings and Valuation

This table compares NewJersey Resources and Tokyo Gas Co.,Ltd.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewJersey Resources	$2.04 billion	2.87	$335.63 million	$3.37	17.17
Tokyo Gas Co.,Ltd.	N/A	N/A	N/A	$197.62	0.10

NewJersey Resources has higher revenue and earnings than Tokyo Gas Co.,Ltd.. Tokyo Gas Co.,Ltd. is trading at a lower price-to-earnings ratio than NewJersey Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NewJersey Resources and Tokyo Gas Co.,Ltd.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewJersey Resources	15.67%	14.58%	4.72%
Tokyo Gas Co.,Ltd.	N/A	N/A	N/A

Insider and Institutional Ownership

71.0% of NewJersey Resources shares are held by institutional investors. Comparatively, 0.1% of Tokyo Gas Co.,Ltd. shares are held by institutional investors. 0.7% of NewJersey Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for NewJersey Resources and Tokyo Gas Co.,Ltd., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewJersey Resources	0	0	3	2	3.40
Tokyo Gas Co.,Ltd.	0	0	0	0	0.00

NewJersey Resources currently has a consensus price target of $58.17, indicating a potential upside of 0.53%. Given NewJersey Resources’ stronger consensus rating and higher probable upside, equities analysts clearly believe NewJersey Resources is more favorable than Tokyo Gas Co.,Ltd..

Dividends

NewJersey Resources pays an annual dividend of $1.90 per share and has a dividend yield of 3.3%. Tokyo Gas Co.,Ltd. pays an annual dividend of $0.22 per share and has a dividend yield of 1.1%. NewJersey Resources pays out 56.4% of its earnings in the form of a dividend. Tokyo Gas Co.,Ltd. pays out 0.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NewJersey Resources has raised its dividend for 29 consecutive years. NewJersey Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

NewJersey Resources beats Tokyo Gas Co.,Ltd. on 13 of the 15 factors compared between the two stocks.

About NewJersey Resources

New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 576,000 customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates clean energy projects, including commercial and residential solar installation situated in New Jersey, Rhode Island, New York, Connecticut, Michigan, and Indiana. The Energy Services segment maintains and operates natural gas transportation and storage capacity contracts, as well as provides physical wholesale energy, retail energy and energy management services in the United States and Canada. The Storage and Transportation segment invests in invests in energy-related ventures. It provides heating, ventilation, and cooling services; sales and installation of appliances; offers solar equipment installation, and plumbing repair and installation services; and holds commercial real estate properties. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.

About Tokyo Gas Co.,Ltd.

Tokyo Gas Co.,Ltd. engages in the production, supply, and sale of city gas, and LNG in Japan. The company offers engineering solutions; gas construction; and gas pipelines services, as well as engages in gas appliances business. It is also involved in fuel procurement, power generation, and sales of electricity; and overseas resource development, renewable energy, and LNG infrastructure business. In addition, the company provides district heating and cooling, and energy services; and develops LNG terminals and pipes. Further, it engages in the real estate development activities; and leasing and management of land and buildings. The company was formerly known as Tokyo Gas Company and changed its name to Tokyo Gas Co.,Ltd. in July 1893. The company was incorporated in 1885 and is headquartered in Tokyo, Japan.