Comparing Chesapeake Utilities (NYSE:CPK) & ENN Energy (OTCMKTS:XNGSF)

Chesapeake Utilities (NYSE:CPK) and ENN Energy (OTCMKTS:XNGSF) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Insider & Institutional Ownership

83.1% of Chesapeake Utilities shares are held by institutional investors. Comparatively, 40.4% of ENN Energy shares are held by institutional investors. 1.4% of Chesapeake Utilities shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Chesapeake Utilities and ENN Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Utilities	15.12%	9.34%	3.73%
ENN Energy	N/A	N/A	N/A

Dividends

Chesapeake Utilities pays an annual dividend of $2.94 per share and has a dividend yield of 2.2%. ENN Energy pays an annual dividend of $0.39 per share and has a dividend yield of 6.2%. Chesapeake Utilities pays out 46.9% of its earnings in the form of a dividend. ENN Energy pays out 25.1% 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. Chesapeake Utilities has raised its dividend for 22 consecutive years. ENN Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Chesapeake Utilities and ENN Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Utilities	$930.00 million	3.51	$140.30 million	$6.27	21.58
ENN Energy	N/A	N/A	N/A	$1.54	4.04

Chesapeake Utilities has higher revenue and earnings than ENN Energy. ENN Energy is trading at a lower price-to-earnings ratio than Chesapeake Utilities, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Chesapeake Utilities and ENN Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Utilities	0	3	1	0	2.25
ENN Energy	0	0	0	0	0.00

Chesapeake Utilities currently has a consensus target price of $138.00, indicating a potential upside of 1.97%. Given Chesapeake Utilities’ stronger consensus rating and higher possible upside, analysts plainly believe Chesapeake Utilities is more favorable than ENN Energy.

Summary

Chesapeake Utilities beats ENN Energy on 12 of the 14 factors compared between the two stocks.

About Chesapeake Utilities

Chesapeake Utilities Corporation operates as an energy delivery company. The company operates through two segments, Regulated Energy and Unregulated Energy. The Regulated Energy segment natural gas distribution operations in central and southern Delaware, Maryland's eastern shore, and Florida; regulated natural gas transmission in the Delmarva Peninsula, Ohio, and Florida; and regulated electric distribution in northeast and northwest Florida. The Unregulated Energy segment engages in the propane operations in the Mid-Atlantic region, North Carolina, South Carolina, and Florida; unregulated natural gas transmission/supply operation in central and eastern Ohio; generation of electricity and steam; provision of compressed natural gas, liquefied natural gas, and renewable natural gas transportation and pipeline solutions primarily to utilities and pipelines in the United States; and sustainable energy investments. This segment is also involved in the provision of other unregulated services, such as energy-related merchandise sale and heating, ventilation and air conditioning, and plumbing and electrical services. Chesapeake Utilities Corporation was founded in 1859 and is headquartered in Dover, Delaware.

About ENN Energy

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructure in the People's Republic of China. It operates through Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Value Added Business segments. The company also distributes and sells piped gas, liquefied natural gas (LNG), and other multi-energy products; operates vehicle gas refuelling stations; and provides services related to low-carbon integrated solutions. In addition, it is involved in the integrated energy business; retail of gas pipelines, and related materials and equipment; transportation of oil products and gas; and sourcing and sell of LNG, as well as wholesale and retail of LNG, CNG, gas equipment, appliances, and others; and provision of financial services. The company serves residential, commercial, and industrial customers. ENN Energy Holdings Limited was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. The company was founded in 1989 and is headquartered in Langfang, China.