Chesapeake Utilities Corporation (NYSE: CPK) and Regency Energy Partners (NASDAQ:RGNC) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their profitabiliy, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

60.0% of Chesapeake Utilities Corporation shares are owned by institutional investors. 5.4% of Chesapeake Utilities Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Chesapeake Utilities Corporation and Regency Energy Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Utilities Corporation 0 4 1 0 2.20
Regency Energy Partners 0 0 0 0 N/A

Chesapeake Utilities Corporation currently has a consensus target price of $69.50, indicating a potential downside of 11.69%. Given Chesapeake Utilities Corporation’s higher probable upside, research analysts clearly believe Chesapeake Utilities Corporation is more favorable than Regency Energy Partners.

Valuation and Earnings

This table compares Chesapeake Utilities Corporation and Regency Energy Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chesapeake Utilities Corporation $537.72 million 2.39 $123.36 million $2.56 30.74
Regency Energy Partners N/A N/A N/A N/A N/A

Chesapeake Utilities Corporation has higher revenue and earnings than Regency Energy Partners.

Profitability

This table compares Chesapeake Utilities Corporation and Regency Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Utilities Corporation 7.40% 9.18% 3.41%
Regency Energy Partners -0.30% -0.47% -0.07%

Dividends

Chesapeake Utilities Corporation pays an annual dividend of $1.30 per share and has a dividend yield of 1.7%. Regency Energy Partners does not pay a dividend. Chesapeake Utilities Corporation pays out 50.8% of its earnings in the form of a dividend. Regency Energy Partners has increased its dividend for 13 consecutive years.

Summary

Chesapeake Utilities Corporation beats Regency Energy Partners on 9 of the 11 factors compared between the two stocks.

Chesapeake Utilities Corporation Company Profile

Chesapeake Utilities Corporation (Chesapeake) is an energy company. The Company operates through two segments: Regulated Energy and Unregulated Energy. The Company provides natural gas distribution and transmission; natural gas supply, gathering, processing and marketing; electric distribution and generation; propane distribution; propane and crude oil wholesale marketing; steam generation, and other energy-related services. The Regulated Energy segment includes the Company’s natural gas distribution, natural gas transmission and electric distribution operations. The Unregulated Energy segment includes its propane distribution, propane and crude oil wholesale marketing, natural gas marketing and unregulated natural gas supply, gathering and processing, electricity and steam generation and other unregulated energy-related services to customers.

Regency Energy Partners Company Profile

Regency Energy Partners LP gathers and processes, compress, treats and transports natural gas; transports, fractionates and stores natural gas liquids (NGLs); gathers, transports and terminals oil received from producers; gathers and disposes salt water, and manages coal and natural resource properties in the United States. The Company has six business segments: Gathering and Processing, Natural Gas Transportation, NGL Services, Contract Services, Natural Resources and Corporate. The Gathering and Processing segment provides wellhead-to-market services to producers of natural gas. The Natural Gas Transportation segment owns a 49.99% general partner interest in RIGS Haynesville Partnership Co. The NGL Services segment owns a 30% membership interest in Lone Star NGL LLC. The Contract Services segment owns and operates a fleet of compressors. The Natural Resources segment manages coal and natural resources properties. The Corporate segment includes its corporate assets.

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