Comparing National Fuel Gas (NYSE:NFG) and Suburban Propane Partners (NYSE:SPH)

Suburban Propane Partners (NYSE:SPH) and National Fuel Gas (NYSE:NFG) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Dividends

Suburban Propane Partners pays an annual dividend of $1.30 per share and has a dividend yield of 7.5%. National Fuel Gas pays an annual dividend of $2.22 per share and has a dividend yield of 2.8%. Suburban Propane Partners pays out 66.3% of its earnings in the form of a dividend. National Fuel Gas pays out 30.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. National Fuel Gas has increased its dividend for 55 consecutive years.

Risk & Volatility

Suburban Propane Partners has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, National Fuel Gas has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Suburban Propane Partners and National Fuel Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suburban Propane Partners	0	2	0	1	2.67
National Fuel Gas	0	1	2	0	2.67

National Fuel Gas has a consensus target price of $105.50, indicating a potential upside of 32.11%. Given National Fuel Gas’ higher possible upside, analysts plainly believe National Fuel Gas is more favorable than Suburban Propane Partners.

Valuation and Earnings

This table compares Suburban Propane Partners and National Fuel Gas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suburban Propane Partners	$1.43 billion	0.81	$106.57 million	$1.96	8.87
National Fuel Gas	$2.28 billion	3.33	$518.50 million	$7.20	11.09

National Fuel Gas has higher revenue and earnings than Suburban Propane Partners. Suburban Propane Partners is trading at a lower price-to-earnings ratio than National Fuel Gas, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Suburban Propane Partners and National Fuel Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suburban Propane Partners	9.37%	18.57%	5.25%
National Fuel Gas	26.97%	19.04%	7.33%

Institutional & Insider Ownership

30.9% of Suburban Propane Partners shares are held by institutional investors. Comparatively, 74.0% of National Fuel Gas shares are held by institutional investors. 2.1% of Suburban Propane Partners shares are held by insiders. Comparatively, 1.3% of National Fuel Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

National Fuel Gas beats Suburban Propane Partners on 13 of the 17 factors compared between the two stocks.

About Suburban Propane Partners

Suburban Propane Partners, L.P., through its subsidiaries, engages in the retail marketing and distribution of propane, renewable propane, fuel oil, and refined fuels in the United States. The company operates through four segments: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. The Propane segment is involved in the retail distribution of propane for space heating, water heating, cooking, and clothes drying for use as a motor fuel in internal combustion engines to power over-the-road vehicles, forklifts, and stationary engines, as well as to fire furnaces as a cutting gas to the industrial customers; and for tobacco curing, crop drying, poultry brooding, and weed control in the agricultural markets. It also engages in the wholesale distribution of propane to industrial end users. Its Fuel Oil and Refined Fuels segment engages in the retail distribution of fuel oil, diesel, kerosene, and gasoline to residential and commercial customers for use in primarily as a source of heat in homes and buildings. The Natural Gas and Electricity segment markets natural gas and electricity to residential and commercial customers in the deregulated energy markets in New York and Pennsylvania. The All Other segment sells, installs, and services a range of home comfort equipment, including whole-house heating products, air cleaners, humidifiers, and space heaters. The company serves residential, commercial, industrial, and agricultural customers primarily in the east and west coast regions of the United States, as well as portions of the Midwest region of the United States and Alaska. Suburban Propane Partners, L.P. was founded in 1945 and is based in Whippany, New Jersey.

About National Fuel Gas

National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil. The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, as well as provides gathering services to Seneca. The Utility segment sells natural gas or provides natural gas utility services to various customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.