Chesapeake Utilities Corporation (NYSE: CPK) and Regency Energy Partners (NYSE:RGP) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitabiliy, earnings, risk, valuation, dividends and analyst recommendations.

Dividends

Chesapeake Utilities Corporation pays an annual dividend of $1.30 per share and has a dividend yield of 1.6%. Regency Energy Partners does not pay a dividend. Chesapeake Utilities Corporation pays out 50.8% of its earnings in the form of a dividend. Chesapeake Utilities Corporation has raised its dividend for 13 consecutive years and Regency Energy Partners has raised its dividend for 6 consecutive years.

Earnings & Valuation

This table compares Chesapeake Utilities Corporation and Regency Energy Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chesapeake Utilities Corporation $537.72 million 2.41 $123.36 million $2.56 30.96
Regency Energy Partners N/A N/A N/A N/A N/A

Chesapeake Utilities Corporation has higher revenue and earnings than Regency Energy Partners.

Profitability

This table compares Chesapeake Utilities Corporation and Regency Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Utilities Corporation 7.40% 9.18% 3.41%
Regency Energy Partners -0.30% -0.47% -0.07%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Chesapeake Utilities Corporation and Regency Energy Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Utilities Corporation 0 4 1 0 2.20
Regency Energy Partners 0 0 0 0 N/A

Chesapeake Utilities Corporation currently has a consensus target price of $69.50, indicating a potential downside of 12.30%. Given Chesapeake Utilities Corporation’s higher probable upside, equities research analysts clearly believe Chesapeake Utilities Corporation is more favorable than Regency Energy Partners.

Insider and Institutional Ownership

60.0% of Chesapeake Utilities Corporation shares are held by institutional investors. 5.4% of Chesapeake Utilities Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Chesapeake Utilities Corporation beats Regency Energy Partners on 10 of the 11 factors compared between the two stocks.

About Chesapeake Utilities Corporation

Chesapeake Utilities Corporation (Chesapeake) is an energy company. The Company operates through two segments: Regulated Energy and Unregulated Energy. The Company provides natural gas distribution and transmission; natural gas supply, gathering, processing and marketing; electric distribution and generation; propane distribution; propane and crude oil wholesale marketing; steam generation, and other energy-related services. The Regulated Energy segment includes the Company’s natural gas distribution, natural gas transmission and electric distribution operations. The Unregulated Energy segment includes its propane distribution, propane and crude oil wholesale marketing, natural gas marketing and unregulated natural gas supply, gathering and processing, electricity and steam generation and other unregulated energy-related services to customers.

About Regency Energy Partners

Regency Energy Partners LP gathers and processes, compress, treats and transports natural gas; transports, fractionates and stores natural gas liquids (NGLs); gathers, transports and terminals oil received from producers; gathers and disposes salt water, and manages coal and natural resource properties in the United States. The Company has six business segments: Gathering and Processing, Natural Gas Transportation, NGL Services, Contract Services, Natural Resources and Corporate. The Gathering and Processing segment provides wellhead-to-market services to producers of natural gas. The Natural Gas Transportation segment owns a 49.99% general partner interest in RIGS Haynesville Partnership Co. The NGL Services segment owns a 30% membership interest in Lone Star NGL LLC. The Contract Services segment owns and operates a fleet of compressors. The Natural Resources segment manages coal and natural resources properties. The Corporate segment includes its corporate assets.

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