Reviewing Naturgy Energy Group (OTCMKTS:GASNF) and Chesapeake Utilities (NYSE:CPK)

Chesapeake Utilities (NYSE:CPK) and Naturgy Energy Group (OTCMKTS:GASNF) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Chesapeake Utilities and Naturgy Energy Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Utilities	0	3	1	0	2.25
Naturgy Energy Group	0	0	0	0	0.00

Chesapeake Utilities presently has a consensus target price of $137.00, suggesting a potential upside of 2.89%. Given Chesapeake Utilities’ stronger consensus rating and higher possible upside, research analysts clearly believe Chesapeake Utilities is more favorable than Naturgy Energy Group.

Profitability

This table compares Chesapeake Utilities and Naturgy Energy Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Utilities	15.12%	9.34%	3.73%
Naturgy Energy Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Chesapeake Utilities and Naturgy Energy Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Utilities	$930.00 million	3.45	$140.30 million	$6.27	21.24
Naturgy Energy Group	N/A	N/A	N/A	$1.56	21.70

Chesapeake Utilities has higher revenue and earnings than Naturgy Energy Group. Chesapeake Utilities 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.

Dividends

Chesapeake Utilities pays an annual dividend of $2.94 per share and has a dividend yield of 2.2%. Naturgy Energy Group pays an annual dividend of $0.71 per share and has a dividend yield of 2.1%. Chesapeake Utilities pays out 46.9% of its earnings in the form of a dividend. Naturgy Energy Group pays out 45.4% 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. Chesapeake Utilities has raised its dividend for 22 consecutive years. Chesapeake Utilities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

83.1% of Chesapeake Utilities shares are held by institutional investors. Comparatively, 9.2% of Naturgy Energy Group shares are held by institutional investors. 1.4% of Chesapeake Utilities shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Chesapeake Utilities beats Naturgy Energy Group on 12 of the 14 factors compared between the two stocks.

About Chesapeake Utilities

Chesapeake Utilities Corporation operates as an energy delivery company. The company operates through two segments, Regulated Energy and Unregulated Energy. The Regulated Energy segment natural gas distribution operations in central and southern Delaware, Maryland's eastern shore, and Florida; regulated natural gas transmission in the Delmarva Peninsula, Ohio, and Florida; and regulated electric distribution in northeast and northwest Florida. The Unregulated Energy segment engages in the propane operations in the Mid-Atlantic region, North Carolina, South Carolina, and Florida; unregulated natural gas transmission/supply operation in central and eastern Ohio; generation of electricity and steam; provision of compressed natural gas, liquefied natural gas, and renewable natural gas transportation and pipeline solutions primarily to utilities and pipelines in the United States; and sustainable energy investments. This segment is also involved in the provision of other unregulated services, such as energy-related merchandise sale and heating, ventilation and air conditioning, and plumbing and electrical services. Chesapeake Utilities Corporation was founded in 1859 and is headquartered in Dover, Delaware.

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.