Analyzing China Natural Gas (CHNGQ) & Southwest Gas (SWX)
China Natural Gas (OTCMKTS:CHNGQ) and Southwest Gas (NYSE:SWX) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Insider & Institutional Ownership
83.5% of Southwest Gas shares are held by institutional investors. 20.8% of China Natural Gas shares are held by company insiders. Comparatively, 1.0% of Southwest Gas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares China Natural Gas and Southwest Gas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Natural Gas||N/A||N/A||N/A|
This is a breakdown of current recommendations for China Natural Gas and Southwest Gas, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Natural Gas||0||0||0||0||N/A|
Southwest Gas has a consensus target price of $77.40, indicating a potential downside of 7.63%. Given Southwest Gas’ higher possible upside, analysts plainly believe Southwest Gas is more favorable than China Natural Gas.
Earnings & Valuation
This table compares China Natural Gas and Southwest Gas’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Natural Gas||N/A||N/A||N/A||N/A||N/A|
|Southwest Gas||$2.55 billion||1.62||$193.84 million||$3.62||23.14|
Southwest Gas has higher revenue and earnings than China Natural Gas.
Volatility & Risk
China Natural Gas has a beta of 2.81, indicating that its stock price is 181% more volatile than the S&P 500. Comparatively, Southwest Gas has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.
Southwest Gas pays an annual dividend of $2.08 per share and has a dividend yield of 2.5%. China Natural Gas does not pay a dividend. Southwest Gas pays out 57.5% of its earnings in the form of a dividend. Southwest Gas has raised its dividend for 6 consecutive years.
Southwest Gas beats China Natural Gas on 9 of the 12 factors compared between the two stocks.
About China Natural Gas
China Natural Gas, Inc., an integrated natural gas operator, engages in the sale and distribution of natural gas and gasoline to commercial, industrial, and residential customers in the People's Republic of China. The company is primarily involved in the distribution of compressed natural gas (CNG) through its variable interest entity-owned CNG fueling stations. As of December 31, 2012, it operated 31 CNG fueling stations, including 20 CNG fueling stations in Shaanxi Province, 10 CNG fueling stations in Henan Province, and 1 CNG fueling station in Hubei Province. It also installs natural gas pipelines, as well as distributes and sells piped natural gas to residential and commercial customers through a high pressure pipeline network of approximately 120 kilometers in the city of Xi'an in Shaanxi Province, including Lantian County; the districts of Lintong and Baqiao in Shaanxi Province; and the city of Lingbao in Henan Province. As of the above date, the company had approximately 122,020 residential and commercial customers for its pipeline network, as well as operated 4 automobile conversion sites for converting gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. The company is based in Xi'an, the People's Republic of China. On July 2, 2014, the involuntary petition of China Natural Gas, Inc. for reorganization under Chapter 11 was converted to Chapter 7. The involuntary petition was filed under Chapter 11 on February 8, 2013.
About Southwest Gas
Southwest Gas Holdings, Inc., through its subsidiaries, purchases, distributes, and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Operations and Construction Services segments. As of December 31, 2017, it had 2,015,000 residential, commercial, industrial, and other natural gas customers. The company installs, replaces, repairs, and maintains energy distribution systems from the town border station to the end-user; and develops industrial construction solutions. The company also serves customers in the provinces of British Columbia and Ontario in Canada. Southwest Gas Holdings, Inc. was founded in 1931 and is headquartered in Las Vegas, Nevada.
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