Analyzing China Gas (OTCMKTS:CGHLY) & ONE Gas (NYSE:OGS)

China Gas (OTCMKTS:CGHLY) and ONE Gas (NYSE:OGS) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of recent ratings and target prices for China Gas and ONE Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Gas	0	0	0	0	0.00
ONE Gas	0	6	6	0	2.50

ONE Gas has a consensus target price of $89.23, indicating a potential upside of 10.83%. Given ONE Gas’ stronger consensus rating and higher possible upside, analysts plainly believe ONE Gas is more favorable than China Gas.

Insider and Institutional Ownership

88.7% of ONE Gas shares are owned by institutional investors. 0.9% of ONE Gas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares China Gas and ONE Gas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Gas	N/A	N/A	N/A	N/A	N/A
ONE Gas	$2.43 billion	2.08	$264.22 million	$4.64	17.35

ONE Gas has higher revenue and earnings than China Gas.

Profitability

This table compares China Gas and ONE Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Gas	N/A	N/A	N/A
ONE Gas	12.47%	8.81%	3.45%

Summary

ONE Gas beats China Gas on 9 of the 9 factors compared between the two stocks.

About China Gas

China Gas Holdings Limited operates as a gas operator and service provider in the People's Republic of China. The company invests in, constructs, operates, and maintains city and town gas pipelines, gas terminals, storage and transportation facilities, and gas logistics systems; transmits natural gas and liquefied petroleum gas (LPG) to residential, industrial, and commercial users; constructs and operates compressed natural gas/liquefied natural gas refilling stations; and develops technologies related to natural gas and LPG. It is also involved in the investment in petrochemical facilities of storage and transportation; producing, storing, and selling of LPG and chemical products, as well as propane and butane; CBM business; exploration and production of coal bed methane; and gas station administration services. In addition, the company offers treasury, management, consultancy, and procurement services; and engages in wholesale and retail of household equipment, electric appliances, kitchen appliances, and others. Further, it is involved in the development and investment in clean energy; wholesale and trading of natural gas and liquefied natural gas; and sale of electricity, as well as develops, produces, and sells gas meters, and other utility systems. Additionally, the company offers gas stoves, water heater, and wall-mounting heaters; safety products, such as pipes, valves, and alarms; food staples, and cooking ingredients. Furthermore, the company engages in the wholesale, retail, installs, and maintains of household equipment, electric appliances, and kitchen appliances, as well as involved in investment holding and distributes heating services. China Gas Holdings Limited was incorporated in 1995 and is headquartered in Wan Chai, Hong Kong.

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.