Contrasting Snam (SNMRF) & Its Rivals

Snam (OTCMKTS:SNMRF) is one of 46 public companies in the “Gas Utilities” industry, but how does it compare to its competitors? We will compare Snam to related businesses based on the strength of its earnings, institutional ownership, profitability, dividends, valuation, analyst recommendations and risk.

Insider and Institutional Ownership

22.6% of Snam shares are held by institutional investors. Comparatively, 52.7% of shares of all “Gas Utilities” companies are held by institutional investors. 10.3% of shares of all “Gas Utilities” companies are held by insiders. 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.

Dividends

Snam pays an annual dividend of $0.20 per share and has a dividend yield of 2.7%. Snam pays out 61.1% of its earnings in the form of a dividend. As a group, “Gas Utilities” companies pay a dividend yield of 12.1% and pay out 17.5% of their earnings in the form of a dividend. Snam lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Snam and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Snam	N/A	N/A	22.45
Snam Competitors	$2.90 billion	$316.42 million	13.78

Snam’s competitors have higher revenue and earnings than Snam. Snam is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Snam and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snam	2	2	1	0	1.80
Snam Competitors	453	1354	1137	52	2.26

As a group, “Gas Utilities” companies have a potential upside of 10.96%. Given Snam’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Snam has less favorable growth aspects than its competitors.

Profitability

This table compares Snam and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snam	N/A	N/A	N/A
Snam Competitors	18.87%	8.44%	3.69%

Summary

Snam competitors beat Snam on 12 of the 13 factors compared.

About Snam

Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure. The company operates through Transportation, Storage, Regasification, Energy Transition, and other segments. It provides natural gas transportation and dispatching services; and owns and manages liquified natural gas (LNG) regasification plants. The company also offers natural gas storage services through an integrated group of infrastructure comprising deposits, wells, gas treatment and compression plants, and the operational dispatching systems; and operates storage concessions located in Lombardy, Emilia-Romagna, and Abruzzo. In addition, it provides energy efficiency solutions for companies, condominiums, tertiary, and public administration sectors; and invests, constructs, develops, and operates biogas and biomethane plants. Further, the company offers engineering support and consulting services in technical and specialized fields; and sells automotive compressed natural gas (CNG) compressors. It operates a natural gas transportation network of approximately 38,000 kilometers in Italy, Austria, Tunisia, Egypt, the United Arab Emirates, France, Greece, and the United Kingdom. The company was formerly known as Snam Rete Gas S.p.A. and changed its name to Snam S.p.A. in January 2012. Snam S.p.A. was founded in 1941 and is headquartered in San Donato Milanese, Italy.