Concho Resources (NYSE:CXO) and The Hong Kong and China Gas (OTCMKTS:HOKCY) are both large-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Concho Resources and The Hong Kong and China Gas, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Concho Resources 0 7 17 0 2.71
The Hong Kong and China Gas 0 0 0 0 N/A

Concho Resources currently has a consensus target price of $178.09, suggesting a potential upside of 18.39%. Given Concho Resources’ higher possible upside, analysts plainly believe Concho Resources is more favorable than The Hong Kong and China Gas.

Valuation and Earnings

This table compares Concho Resources and The Hong Kong and China Gas’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Concho Resources $2.59 billion 11.65 $956.00 million $2.09 71.98
The Hong Kong and China Gas $4.17 billion 7.03 $1.07 billion N/A N/A

The Hong Kong and China Gas has higher revenue and earnings than Concho Resources.

Dividends

The Hong Kong and China Gas pays an annual dividend of $0.02 per share and has a dividend yield of 1.0%. Concho Resources does not pay a dividend.

Risk & Volatility

Concho Resources has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, The Hong Kong and China Gas has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Institutional & Insider Ownership

77.4% of Concho Resources shares are held by institutional investors. Comparatively, 0.1% of The Hong Kong and China Gas shares are held by institutional investors. 1.1% of Concho Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Concho Resources and The Hong Kong and China Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Concho Resources 34.13% 5.37% 3.54%
The Hong Kong and China Gas N/A N/A N/A

Summary

Concho Resources beats The Hong Kong and China Gas on 9 of the 12 factors compared between the two stocks.

Concho Resources Company Profile

Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States. The company's principal operating areas are located in the Permian Basin of southeast New Mexico and west Texas. As of December 31, 2017, its total estimated proved reserves were 840 million barrels of oil equivalent. Concho Resources Inc. was founded in 2006 and is headquartered in Midland, Texas.

The Hong Kong and China Gas Company Profile

The Hong Kong and China Gas Company Limited, together with its subsidiaries, engages in the produces, distributes, and markets gas in Hong Kong and Mainland China. It is involved in the provision of clean fuels, including liquefied natural gas, methanol, and coal and other chemicals; and engages in the conversion and utilization of biomass, and industrial and agricultural waste, as well as operation of natural gas refilling stations, aviation fuel storage facilities, piped city-gas projects, upstream and midstream developments, water and wastewater treatment projects, and energy exploration and utilization ventures. The company operates a pipeline network of 3,600 km gas pipes severing approximately 1.2 million customers. It also provides connectivity, and data center and cloud computing services; and engages in the software development, solution implementation, and systems integration activities. In addition, the company offers consultancy and engineering contractor services, including utilities installation, infrastructure construction, trenchless technologies, and civil and building services engineering for public and private projects, as well as develops and markets proprietary smart gas meter solutions. Further, it is involved in water production and distribution, wastewater treatment, industrial wastewater treatment, water reuse, network construction, and purified water businesses; and serves 1.2 million customers through a pipeline network of approximately 7,000 km. Additionally, the company manufactures polyethylene piping and fittings; and engages in the customers center, café, restaurant, retail sale, automatic meter reading system development, laboratory testing, payment gateway and related, project management, landfill gas project, financing, logistics, oil, research and development, property development, and securities investment activities. The Hong Kong and China Gas Company Limited was founded in 1862 and is headquartered in North Point, Hong Kong.

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