Analyzing ENN Energy (OTCMKTS:XNGSF) & Southwest Gas (NYSE:SWX)

Southwest Gas (NYSE:SWX) and ENN Energy (OTCMKTS:XNGSF) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Valuation and Earnings

This table compares Southwest Gas and ENN Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southwest Gas	$1.94 billion	3.37	$439.83 million	$7.66	11.80
ENN Energy	N/A	N/A	N/A	$1.54	4.07

Southwest Gas has higher revenue and earnings than ENN Energy. ENN Energy is trading at a lower price-to-earnings ratio than Southwest Gas, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Southwest Gas and ENN Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southwest Gas	31.85%	6.91%	2.64%
ENN Energy	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Southwest Gas and ENN Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southwest Gas	0	1	6	1	3.00
ENN Energy	0	0	0	0	0.00

Southwest Gas presently has a consensus price target of $98.29, indicating a potential upside of 8.77%. Given Southwest Gas’ stronger consensus rating and higher possible upside, equities analysts plainly believe Southwest Gas is more favorable than ENN Energy.

Insider & Institutional Ownership

92.8% of Southwest Gas shares are held by institutional investors. Comparatively, 40.4% of ENN Energy shares are held by institutional investors. 0.6% of Southwest Gas 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.

Dividends

Southwest Gas pays an annual dividend of $2.58 per share and has a dividend yield of 2.9%. ENN Energy pays an annual dividend of $0.39 per share and has a dividend yield of 6.2%. Southwest Gas pays out 33.7% of its earnings in the form of a dividend. ENN Energy pays out 25.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ENN Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Southwest Gas beats ENN Energy on 12 of the 14 factors compared between the two stocks.

About Southwest Gas

Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2023, it had 2,226,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.

About ENN Energy

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructure in the People's Republic of China. It operates through Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Value Added Business segments. The company also distributes and sells piped gas, liquefied natural gas (LNG), and other multi-energy products; operates vehicle gas refuelling stations; and provides services related to low-carbon integrated solutions. In addition, it is involved in the integrated energy business; retail of gas pipelines, and related materials and equipment; transportation of oil products and gas; and sourcing and sell of LNG, as well as wholesale and retail of LNG, CNG, gas equipment, appliances, and others; and provision of financial services. The company serves residential, commercial, and industrial customers. ENN Energy Holdings Limited was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. The company was founded in 1989 and is headquartered in Langfang, China.