The Hong Kong and China Gas (OTCMKTS: HOKCY) and New Jersey Resources (NYSE:NJR) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.
The Hong Kong and China Gas pays an annual dividend of $0.04 per share and has a dividend yield of 1.9%. New Jersey Resources pays an annual dividend of $1.09 per share and has a dividend yield of 2.7%. New Jersey Resources pays out 63.0% of its earnings in the form of a dividend. New Jersey Resources has increased its dividend for 22 consecutive years. New Jersey Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares The Hong Kong and China Gas and New Jersey Resources’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Hong Kong and China Gas||$3.68 billion||7.97||$959.71 million||N/A||N/A|
|New Jersey Resources||$2.27 billion||1.55||$132.06 million||$1.73||23.24|
The Hong Kong and China Gas has higher revenue and earnings than New Jersey Resources.
Risk and Volatility
The Hong Kong and China Gas has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, New Jersey Resources has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.
This is a breakdown of current recommendations for The Hong Kong and China Gas and New Jersey Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Hong Kong and China Gas||0||0||0||0||N/A|
|New Jersey Resources||0||1||3||0||2.75|
New Jersey Resources has a consensus price target of $43.00, suggesting a potential upside of 6.97%. Given New Jersey Resources’ higher probable upside, analysts clearly believe New Jersey Resources is more favorable than The Hong Kong and China Gas.
This table compares The Hong Kong and China Gas and New Jersey Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Hong Kong and China Gas||N/A||N/A||N/A|
|New Jersey Resources||9.08%||18.96%||6.17%|
Insider and Institutional Ownership
0.0% of The Hong Kong and China Gas shares are owned by institutional investors. Comparatively, 64.1% of New Jersey Resources shares are owned by institutional investors. 1.5% of New Jersey Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
New Jersey Resources beats The Hong Kong and China Gas on 9 of the 14 factors compared between the two stocks.
The Hong Kong and China Gas Company Profile
The Hong Kong and China Gas Company Limited, together with its subsidiaries, engages in the production, distribution, and marketing of gas in Hong Kong and Mainland China. It provides clean fuels, such as liquefied natural gas, methanol, and other gasoline substitutes; and operates vehicle gas refilling stations, landfill gas projects, aviation fuel 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 consisting of approximately 3,500 kilometers of gas pipes severing approximately 1.8 million customers. The company also provides connectivity and cloud computing services to professional clients, including telecommunications carriers, international network service providers, and reputable corporations. In addition, it engages in software development, project implementation, and system integration businesses; and consultancy and engineering contractor services, such as utilities installation, infrastructure construction, trenchless technologies, and civil and building engineering services for public and private projects, as well as manufacturing smart gas meters. Further, the company is involved in café, restaurant, and retail sales businesses; the development of automatic meter reading systems; laboratory testing; gas sales, payment gateway, water supply, and related businesses; coal and logistics businesses; financial activities; and securities investment. Additionally, it offers project management, consultancy, and research and development services. The Hong Kong and China Gas Company Limited was founded in 1862 and is based in North Point, Hong Kong.
New Jersey Resources Company Profile
New Jersey Resources Corporation is an energy services holding company. The Company’s business is the distribution of natural gas through a regulated utility, which provides other retail and wholesale energy services to customers and investing in clean energy projects and midstream assets. It operates in four business segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services and Midstream. The Natural Gas Distribution segment consists of regulated natural gas services, off-system sales, capacity and storage management operations. The Energy Services segment consists of unregulated wholesale energy operations. The Clean Energy Ventures segment consists of capital investments in clean energy projects. The Midstream segment consists of investments in the midstream natural gas market, such as natural gas transportation and storage facilities. The Home Services and Other operations consist of heating, cooling and water appliance sales and installations, among others.
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