Reviewing China Gas (OTCMKTS:CGHLY) & National Fuel Gas (NYSE:NFG)

National Fuel Gas (NYSE:NFG) and China Gas (OTCMKTS:CGHLY) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for National Fuel Gas and China Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Fuel Gas	0	2	1	1	2.75
China Gas	0	0	0	0	0.00

National Fuel Gas presently has a consensus target price of $105.50, suggesting a potential upside of 29.18%. Given National Fuel Gas’ stronger consensus rating and higher probable upside, equities analysts plainly believe National Fuel Gas is more favorable than China Gas.

Profitability

This table compares National Fuel Gas and China Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Fuel Gas	26.97%	19.04%	7.33%
China Gas	N/A	N/A	N/A

Earnings & Valuation

This table compares National Fuel Gas and China Gas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Fuel Gas	$2.28 billion	3.41	$518.50 million	$7.20	11.34
China Gas	N/A	N/A	N/A	N/A	N/A

National Fuel Gas has higher revenue and earnings than China Gas.

Insider and Institutional Ownership

74.0% of National Fuel Gas shares are held by institutional investors. 1.3% of National Fuel Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

National Fuel Gas beats China Gas on 10 of the 10 factors compared between the two stocks.

About National Fuel Gas

National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil. The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, as well as provides gathering services to Seneca. The Utility segment sells natural gas or provides natural gas utility services to various customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.

About China Gas

China Gas Holdings Limited operates as a gas operator and service provider in the People's Republic of China. The company invests in, constructs, operates, and maintains city and town gas pipelines, gas terminals, storage and transportation facilities, and gas logistics systems; transmits natural gas and liquefied petroleum gas (LPG) to residential, industrial, and commercial users; constructs and operates compressed natural gas/liquefied natural gas refilling stations; and develops technologies related to natural gas and LPG. It is also involved in the investment in petrochemical facilities of storage and transportation; producing, storing, and selling of LPG and chemical products, as well as propane and butane; CBM business; exploration and production of coal bed methane; and gas station administration services. In addition, the company offers treasury, management, consultancy, and procurement services; and engages in wholesale and retail of household equipment, electric appliances, kitchen appliances, and others. Further, it is involved in the development and investment in clean energy; wholesale and trading of natural gas and liquefied natural gas; and sale of electricity, as well as develops, produces, and sells gas meters, and other utility systems. Additionally, the company offers gas stoves, water heater, and wall-mounting heaters; safety products, such as pipes, valves, and alarms; food staples, and cooking ingredients. Furthermore, the company engages in the wholesale, retail, installs, and maintains of household equipment, electric appliances, and kitchen appliances, as well as involved in investment holding and distributes heating services. China Gas Holdings Limited was incorporated in 1995 and is headquartered in Wan Chai, Hong Kong.