Reviewing Transportadora De Gas Sa Ord B (TGS) & Cimarex Energy (XEC)
Transportadora De Gas Sa Ord B (NYSE: TGS) and Cimarex Energy (NYSE:XEC) are both mid-cap oils/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.
Institutional and Insider Ownership
8.4% of Transportadora De Gas Sa Ord B shares are held by institutional investors. Comparatively, 90.0% of Cimarex Energy shares are held by institutional investors. 1.7% of Cimarex Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Transportadora De Gas Sa Ord B has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Cimarex Energy has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
This table compares Transportadora De Gas Sa Ord B and Cimarex Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Transportadora De Gas Sa Ord B||19.92%||65.69%||20.26%|
Earnings and Valuation
This table compares Transportadora De Gas Sa Ord B and Cimarex Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Transportadora De Gas Sa Ord B||$553.46 million||5.89||$217.71 million||$0.79||25.96|
|Cimarex Energy||$1.62 billion||6.54||$1.02 billion||$2.66||42.62|
Cimarex Energy has higher revenue and earnings than Transportadora De Gas Sa Ord B. Transportadora De Gas Sa Ord B is trading at a lower price-to-earnings ratio than Cimarex Energy, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Transportadora De Gas Sa Ord B and Cimarex Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Transportadora De Gas Sa Ord B||0||0||1||0||3.00|
Transportadora De Gas Sa Ord B currently has a consensus target price of $25.00, indicating a potential upside of 21.89%. Cimarex Energy has a consensus target price of $136.29, indicating a potential upside of 20.22%. Given Transportadora De Gas Sa Ord B’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Transportadora De Gas Sa Ord B is more favorable than Cimarex Energy.
Cimarex Energy pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. Transportadora De Gas Sa Ord B does not pay a dividend. Cimarex Energy pays out 12.0% of its earnings in the form of a dividend.
Cimarex Energy beats Transportadora De Gas Sa Ord B on 10 of the 16 factors compared between the two stocks.
About Transportadora De Gas Sa Ord B
Transportadora de Gas del Sur S.A. is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (Liquids). The Company operates through four segments: Natural Gas Transportation Services, Liquids Production and Commercialization, Other Services and Telecommunications. The Company’s pipeline system connects gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. It also provides midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation and maintenance services. The Company transports gas through approximately 5,675 miles of pipeline, of which it owns 4,745 miles. It operates the remaining 930 miles, which are owned by the Gas Trusts.
About Cimarex Energy
Cimarex Energy Co. is an independent oil and gas exploration and production company. The Company operates in exploration and production (E&P) segment. Its operations are located in Oklahoma, Texas and New Mexico. Its E&P activities take place primarily in two areas: the Permian Basin and the Mid-Continent region. Its Permian Basin region encompasses west Texas and southeast New Mexico. Its Mid-Continent region consists of Oklahoma and the Texas Panhandle. As of fiscal year ended December 31, 2016 (fiscal 2016), its activities in the Mid-Continent were focused in the Woodford shale and the Meramec horizon, both in Oklahoma. During fiscal 2016, production from the Mid-Continent averaged 457 millions of cubic feet equivalent (MMcfe) per day, or 47% of total company production. All of the Company’s oil and gas assets are located in the United States. As of December 31, 2016, 63% of its total proved reserves were located in the Mid-Continent region and 37% were in the Permian Basin.
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