Atmos Energy (NYSE:ATO) vs. Superior Plus (OTCMKTS:SUUIF) Critical Review

Superior Plus (OTCMKTS:SUUIF) and Atmos Energy (NYSE:ATO) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Dividends

Superior Plus pays an annual dividend of $0.60 per share and has a dividend yield of 11.2%. Atmos Energy pays an annual dividend of $4.00 per share and has a dividend yield of 2.4%. Superior Plus pays out 312.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Atmos Energy pays out 47.6% of its earnings in the form of a dividend. Atmos Energy has raised its dividend for 41 consecutive years.

Valuation and Earnings

This table compares Superior Plus and Atmos Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Superior Plus	N/A	N/A	N/A	$0.19	27.99
Atmos Energy	$4.70 billion	6.02	$1.20 billion	$8.41	19.90

Atmos Energy has higher revenue and earnings than Superior Plus. Atmos Energy is trading at a lower price-to-earnings ratio than Superior Plus, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Superior Plus and Atmos Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Superior Plus	0	6	1	0	2.14
Atmos Energy	0	9	4	0	2.31

Atmos Energy has a consensus target price of $189.09, indicating a potential upside of 12.96%. Given Atmos Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Atmos Energy is more favorable than Superior Plus.

Profitability

This table compares Superior Plus and Atmos Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Superior Plus	N/A	N/A	N/A
Atmos Energy	28.50%	9.67%	4.67%

Institutional and Insider Ownership

27.9% of Superior Plus shares are held by institutional investors. Comparatively, 90.2% of Atmos Energy shares are held by institutional investors. 0.4% of Atmos Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Atmos Energy beats Superior Plus on 12 of the 14 factors compared between the two stocks.

About Superior Plus

Superior Plus Corp. distributes and markets propane, compressed natural gas and renewable energy in both the United States and Canada. The company operates through The United States Retail Propane Distribution (U.S. Propane), Canadian Retail Propane Distribution (Canadian Propane), and North American Wholesale Propane Distribution (Wholesale Propane), and Certarus segments. The U.S. Propane Distribution segment distributes propane gas and liquid fuels primarily in the Eastern United States, the Midwest, and California to retail customers, including residential and commercial customers. The Canadian Propane segment distributes propane gas and liquid fuels across Canada to retail customers, including residential and commercial customers. The Wholesale Propane segment supplies propane gas for the Canadian Propane and the U.S. Propane segments, as well as propane and other natural gas liquids to third-party wholesale customers in Canada and the United States. The Certarus segment provides low-carbon energy solution for transporting, compressed natural gas, renewable natural gas, and hydrogen. Superior Plus Corp. was incorporated in 1989 and is based in Toronto, Canada.

About Atmos Energy

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states. This segment distributes natural gas to approximately 3.3 million residential, commercial, public authority, and industrial customers; and owned 73,689 miles of underground distribution and transmission mains. The Pipeline and Storage segment engages in the pipeline and storage operations. This segment transports natural gas for third parties and manages five underground storage facilities in Texas; provides ancillary services customary to the pipeline industry, including parking arrangements, lending, and inventory sales; and owned 5,645 miles of gas transmission lines. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.