Critical Review: Naturgy Energy Group (GASNY) versus The Competition

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Naturgy Energy Group and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Naturgy Energy Group	0	0	3	1	3.25
Naturgy Energy Group Competitors	457	1369	1144	53	2.26

As a group, “Gas Utilities” companies have a potential upside of 10.45%. Given Naturgy Energy Group’s rivals higher possible upside, analysts clearly believe Naturgy Energy Group has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

0.0% of Naturgy Energy Group shares are held by institutional investors. Comparatively, 52.7% of shares of all “Gas Utilities” companies are held by institutional investors. 10.4% of shares of all “Gas Utilities” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Naturgy Energy Group and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Naturgy Energy Group	N/A	N/A	21.31
Naturgy Energy Group Competitors	$2.96 billion	$316.42 million	37.49

Naturgy Energy Group’s rivals have higher revenue and earnings than Naturgy Energy Group. Naturgy Energy Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Naturgy Energy Group pays an annual dividend of $0.33 per share and has a dividend yield of 5.0%. Naturgy Energy Group pays out 105.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Gas Utilities” companies pay a dividend yield of 12.1% and pay out 17.4% of their earnings in the form of a dividend. Naturgy Energy Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Naturgy Energy Group and its rivals’ 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
Naturgy Energy Group Competitors	20.21%	7.87%	3.65%

Summary

Naturgy Energy Group rivals beat Naturgy Energy Group on 10 of the 13 factors compared.

Naturgy Energy Group Company Profile

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.