Analyzing Towngas Smart Energy (OTCMKTS:TGASF) and Naturgy Energy Group (OTCMKTS:GASNY)

Naturgy Energy Group (OTCMKTS:GASNY) and Towngas Smart Energy (OTCMKTS:TGASF) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Naturgy Energy Group and Towngas Smart Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Naturgy Energy Group	0	0	3	1	3.25
Towngas Smart Energy	0	0	0	0	0.00

Dividends

Naturgy Energy Group pays an annual dividend of $0.25 per share and has a dividend yield of 3.7%. Towngas Smart Energy pays an annual dividend of $0.08 per share and has a dividend yield of 15.7%. Naturgy Energy Group pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Towngas Smart Energy pays out 20.1% of its earnings in the form of a dividend. Towngas Smart Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Naturgy Energy Group and Towngas Smart Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Naturgy Energy Group	N/A	N/A	N/A	$0.31	21.89
Towngas Smart Energy	N/A	N/A	N/A	$0.40	1.28

Towngas Smart Energy is trading at a lower price-to-earnings ratio than Naturgy Energy Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.0% of Naturgy Energy Group shares are held by institutional investors. Comparatively, 12.3% of Towngas Smart Energy shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Naturgy Energy Group and Towngas Smart Energy’s 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
Towngas Smart Energy	N/A	N/A	N/A

About Naturgy Energy Group

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.

About Towngas Smart Energy

Towngas Smart Energy Company Limited, an investment holding company, sells and distributes piped gas in the People's Republic of China. The company operates through three segments, Sales and Distribution of Piped Gas and Related Products; Gas Connection; and Extended Business. It engages in the provision of natural gas and related services; construction of gas pipelines; sale of gas related household appliances; and other value-added services. The company also offers financing and engineering works services, smart energy solutions, and upstream and midstream services; and operates vehicle gas refilling stations. The company was formerly known as Towngas China Company Limited and changed its name to Towngas Smart Energy Company Limited in December 2021. The company was founded in 1998 and is headquartered in North Point, Hong Kong. Towngas Smart Energy Company Limited is a subsidiary of The Hong Kong and China Gas Company Limited.