South Jersey Industries (NYSE:SJI) and ENAGAS S A/ADR (OTCMKTS:ENGGY) are both mid-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.
Institutional & Insider Ownership
83.3% of South Jersey Industries shares are held by institutional investors. Comparatively, 0.3% of ENAGAS S A/ADR shares are held by institutional investors. 0.6% of South Jersey Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
South Jersey Industries has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, ENAGAS S A/ADR has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500.
South Jersey Industries pays an annual dividend of $1.15 per share and has a dividend yield of 3.7%. ENAGAS S A/ADR pays an annual dividend of $0.74 per share and has a dividend yield of 6.7%. South Jersey Industries pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. South Jersey Industries has increased its dividend for 2 consecutive years.
This is a breakdown of current ratings and recommmendations for South Jersey Industries and ENAGAS S A/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|South Jersey Industries||0||3||3||0||2.50|
|ENAGAS S A/ADR||3||0||0||0||1.00|
South Jersey Industries currently has a consensus target price of $34.17, indicating a potential upside of 10.72%. Given South Jersey Industries’ stronger consensus rating and higher probable upside, equities research analysts plainly believe South Jersey Industries is more favorable than ENAGAS S A/ADR.
Earnings & Valuation
This table compares South Jersey Industries and ENAGAS S A/ADR’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|South Jersey Industries||$1.64 billion||1.74||$17.66 million||$1.38||22.36|
|ENAGAS S A/ADR||$1.53 billion||3.47||$522.74 million||N/A||N/A|
ENAGAS S A/ADR has lower revenue, but higher earnings than South Jersey Industries.
This table compares South Jersey Industries and ENAGAS S A/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|South Jersey Industries||7.97%||7.10%||1.64%|
|ENAGAS S A/ADR||N/A||N/A||N/A|
South Jersey Industries beats ENAGAS S A/ADR on 11 of the 15 factors compared between the two stocks.
About South Jersey Industries
South Jersey Industries, Inc., through its subsidiaries, provides energy-related products and services. The company engages in the purchase, transmission, and sale of natural gas. It also sells natural gas and pipeline transportation capacity on a wholesale basis to residential, commercial, and industrial customers on the interstate pipeline system, as well as transports natural gas, which is purchased directly from producers or suppliers to their customers. As of December 31, 2018, the company had approximately 146.2 miles of mains in the transmission system and 6,567 miles of mains in the distribution system; and served 391,092 residential, commercial, and industrial customers in southern New Jersey. In addition, it markets natural gas storage, commodity, and transportation assets on a wholesale basis for energy marketers, electric and gas utilities, power plants, and natural gas producers in the mid-Atlantic, Appalachian, and southern regions of the United States. Further, the company develops, owns, and operates energy projects comprising natural gas fueled combined heating, cooling and power, and landfill gas-to-energy production facilities, as well as solar-generation sites. Additionally, it owns oil, gas, and mineral rights in the Marcellus Shale region of Pennsylvania; acquires and markets natural gas and electricity to retail end users, as well as provides total energy management services; and services residential and small commercial HVAC systems, and installs small commercial HVAC systems, as well as provides plumbing services and services appliances. South Jersey Industries, Inc. was founded in 1910 and is headquartered in Folsom, New Jersey.
About ENAGAS S A/ADR
EnagÃ¡s, S.A. engages in the development, operation, and maintenance of gas infrastructures in Spain and internationally. The company provides gas transportation services through gas pipelines; natural gas regasification services; and operates underground storage facilities. It is involved in the operation and technical management of the basic network and secondary transportation network for natural gas. The company operates approximately 12,000 kilometers of gas pipelines, 19 compressor stations and 416 regulation and metering stations. EnagÃ¡s, S.A. was founded in 1972 and is based in Madrid, Spain.
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