Naturgy Energy Group (GASNY) versus Its Competitors Critical Review

Naturgy Energy Group (OTCMKTS:GASNY) is one of 46 public companies in the “Gas Utilities” industry, but how does it contrast to its rivals? We will compare Naturgy Energy Group to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, dividends, profitability and risk.

Earnings & Valuation

This table compares Naturgy Energy Group and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Naturgy Energy Group	N/A	N/A	20.94
Naturgy Energy Group Competitors	$2.96 billion	$316.42 million	13.51

Naturgy Energy Group’s rivals have higher revenue and earnings than Naturgy Energy Group. Naturgy Energy Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Naturgy Energy Group pays an annual dividend of $0.33 per share and has a dividend yield of 5.0%. 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. As a group, “Gas Utilities” companies pay a dividend yield of 12.0% and pay out 17.5% of their earnings in the form of a dividend. Naturgy Energy Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Naturgy Energy Group	0	0	3	1	3.25
Naturgy Energy Group Competitors	454	1354	1137	52	2.26

As a group, “Gas Utilities” companies have a potential upside of 10.49%. Given Naturgy Energy Group’s rivals higher possible upside, analysts clearly believe Naturgy Energy Group has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

0.0% of Naturgy Energy Group shares are owned by institutional investors. Comparatively, 52.7% of shares of all “Gas Utilities” companies are owned by institutional investors. 10.4% of shares of all “Gas Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Naturgy Energy Group and its rivals’ 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
Naturgy Energy Group Competitors	18.87%	8.44%	3.69%

Summary

Naturgy Energy Group rivals beat Naturgy Energy Group on 9 of the 13 factors compared.

Naturgy Energy Group Company Profile

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.