Hong Kong & China Gas (OTCMKTS:HOKCY – Get Free Report) and Southwest Gas (NYSE:SWX – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Risk and Volatility
Hong Kong & China Gas has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Southwest Gas has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.
Dividends
Hong Kong & China Gas pays an annual dividend of $0.05 per share and has a dividend yield of 6.0%. Southwest Gas pays an annual dividend of $2.48 per share and has a dividend yield of 3.3%. Southwest Gas pays out 79.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Hong Kong & China Gas | $7.11 billion | 2.20 | $732.21 million | N/A | N/A |
Southwest Gas | $5.11 billion | 1.06 | $198.82 million | $3.11 | 24.16 |
Hong Kong & China Gas has higher revenue and earnings than Southwest Gas.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Hong Kong & China Gas and Southwest Gas, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Hong Kong & China Gas | 0 | 0 | 0 | 0 | 0.00 |
Southwest Gas | 0 | 4 | 0 | 1 | 2.40 |
Southwest Gas has a consensus price target of $75.00, suggesting a potential downside of 0.17%. Given Southwest Gas’ stronger consensus rating and higher possible upside, analysts plainly believe Southwest Gas is more favorable than Hong Kong & China Gas.
Profitability
This table compares Hong Kong & China Gas and Southwest Gas’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Hong Kong & China Gas | N/A | N/A | N/A |
Southwest Gas | 4.66% | 6.76% | 2.08% |
Institutional & Insider Ownership
92.8% of Southwest Gas shares are owned by institutional investors. 0.5% of Southwest Gas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Southwest Gas beats Hong Kong & China Gas on 9 of the 14 factors compared between the two stocks.
About Hong Kong & China Gas
The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas, water supply and energy services in Hong Kong and Mainland China. It is involved in the provision of smart energy, piped city-gas, upstream and midstream projects, water supply and wastewater treatment, urban waste resource utilization, and natural gas filling stations, as well as new energy exploration and utilization activities. The company develops new energy projects that are low in emissions and pollution, which includes clean coal chemical business, liquefaction of methane, etc., as well as supplies town gas. It also provides network connectivity, data center, and ICT services, as well as engineering, procurement, and construction services. In addition, the company offers consultancy and engineering contractor services, including utilities installation, infrastructure construction, and civil and building services engineering for public and private projects; and designs and manufactures gas meters and metering systems. Further, it is involved in water supply, and domestic sewage and industrial wastewater treatment activities. Additionally, the company manufactures polyethylene piping and fittings; as well as engages in the software development, solution implementation, and systems integration activities. The Hong Kong and China Gas Company Limited was founded in 1862 and is headquartered in North Point, Hong Kong.
About Southwest Gas
Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2023, it had 2,226,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.
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