Reviewing Sabine Royalty Trust (NYSE:SBR) and Transportadora De Gas Sa Ord B (NYSE:TGS)

Transportadora De Gas Sa Ord B (NYSE:TGS) and Sabine Royalty Trust (NYSE:SBR) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Transportadora De Gas Sa Ord B and Sabine Royalty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transportadora De Gas Sa Ord B	27.38%	16.29%	10.07%
Sabine Royalty Trust	94.90%	961.80%	839.84%

Analyst Recommendations

This is a breakdown of current ratings for Transportadora De Gas Sa Ord B and Sabine Royalty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transportadora De Gas Sa Ord B	0	2	1	0	2.33
Sabine Royalty Trust	0	0	1	0	3.00

Transportadora De Gas Sa Ord B currently has a consensus target price of $39.00, indicating a potential upside of 34.16%. Given Transportadora De Gas Sa Ord B’s higher possible upside, equities research analysts clearly believe Transportadora De Gas Sa Ord B is more favorable than Sabine Royalty Trust.

Risk & Volatility

Transportadora De Gas Sa Ord B has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Sabine Royalty Trust has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Insider & Institutional Ownership

3.3% of Transportadora De Gas Sa Ord B shares are owned by institutional investors. Comparatively, 15.8% of Sabine Royalty Trust shares are owned by institutional investors. 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.

Valuation and Earnings

This table compares Transportadora De Gas Sa Ord B and Sabine Royalty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transportadora De Gas Sa Ord B	$1.41 billion	3.11	$336.69 million	$2.61	11.14
Sabine Royalty Trust	$77.53 million	13.69	$73.44 million	$4.90	14.85

Transportadora De Gas Sa Ord B has higher revenue and earnings than Sabine Royalty Trust. Transportadora De Gas Sa Ord B is trading at a lower price-to-earnings ratio than Sabine Royalty Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Sabine Royalty Trust beats Transportadora De Gas Sa Ord B on 8 of the 12 factors compared between the two stocks.

About Transportadora De Gas Sa Ord B

Transportadora de Gas del Sur S.A. engages in transportation of natural gas, and production and commercialization of natural gas liquids in Argentina and internationally. The company operates through four segments: Natural Gas Transportation Services; Liquids Production and Commercialization; Midstream; and Telecommunications. The Natural Gas Transportation segment transports natural gas through pipeline system to distribution companies, power plants, and industrial customers. It provides operation and maintenance services for the natural gas transportation facilities. The Liquids Production and Commercialization segment produces and commercializes natural gas liquids, such as ethane, liquid petroleum gas, natural gasoline, propane, and butane. This segment offers certain related services comprising reception, storage, and dispatch of the liquids. The Midstream segment provides natural gas conditioning services; treatment, removal of impurities and natural gas compression, including the collection and transport of natural gas; and inspection and maintenance of pipelines and compressor plants services. In addition, this segment offers steam generation for electricity production and management services for expansion works and steam generation for the production of electricity. The Telecommunications segment offers data transmission services through a network of digital terrestrial radio relay. It serves residential, commercial, industrial, and electric power generation end users. The company was incorporated in 1992 and is headquartered in Buenos Aires, Argentina. Transportadora de Gas del Sur S.A. is a subsidiary of Compañía de Inversiones de Energía S.A.

About Sabine Royalty Trust

Sabine Royalty Trust holds royalty and mineral interests in various producing oil and gas properties in the United States. Its royalty and mineral interests include landowner's royalties, overriding royalty interests, minerals, production payments, and other similar non-participatory interest in certain producing and proved undeveloped oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. Sabine Royalty Trust was founded in 1982 and is based in Dallas, Texas.