Critical Analysis: Naturgy Energy Group (OTCMKTS:GASNY) versus APA Group (OTCMKTS:APAJF)

Naturgy Energy Group (OTCMKTS:GASNY) and APA Group (OTCMKTS:APAJF) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Naturgy Energy Group and APA Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Naturgy Energy Group	N/A	N/A	N/A
APA Group	N/A	N/A	N/A

Dividends

Naturgy Energy Group pays an annual dividend of $0.25 per share and has a dividend yield of 4.1%. APA Group pays an annual dividend of $0.28 per share and has a dividend yield of 4.0%. Naturgy Energy Group pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. APA Group pays out 72.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Naturgy Energy Group and APA Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Naturgy Energy Group	N/A	N/A	N/A	$0.31	19.74
APA Group	N/A	N/A	N/A	$0.39	18.18

APA Group is trading at a lower price-to-earnings ratio than Naturgy Energy Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.0% of Naturgy Energy Group shares are owned by institutional investors. Comparatively, 20.7% of APA Group shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Naturgy Energy Group and APA Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Naturgy Energy Group	0	0	0	1	4.00
APA Group	0	1	0	0	2.00

APA Group has a consensus price target of $9.00, indicating a potential upside of 25.87%. Given APA Group’s higher possible upside, analysts clearly believe APA Group is more favorable than Naturgy Energy Group.

About Naturgy Energy Group

Naturgy Energy Group, S.A., together with its subsidiaries, engages in the supply, liquefaction, regasification, transport, storage, distribution, and sale of natural gas. It operates through Distribution Networks and Energy Markets segments. The company engages in the regulated gas and electricity distribution; sale of liquefied natural gas and the maritime transport business; management conventional thermal generation facilities; and generation and sale of electricity through wind, mini-hydro, solar, and cogeneration sources, as well as provision of supply management services. It serves in Spain, Australia, the United States, Argentina, Brazil, Chile, Mexico, Panama, the rest of Latin America, and internationally. The company was formerly known as Gas Natural SDG, S.A. and changed its name to Naturgy Energy Group, S.A. in June 2018. Naturgy Energy Group, S.A. was incorporated in 1843 and is based in Madrid, Spain.

About APA Group

APA Group engages in the energy infrastructure business in Australia. The company operates through Energy Infrastructure, Asset Management, and Energy Investments segments. It operates gas transmission pipelines and interconnected grids, gas-fired power stations, electricity transmission interconnectors, solar and wind farms, and battery energy storage systems, as well as gas storage, processing, and compression facilities. The company also has interests in approximately 15,000 kilometers of gas transmission pipelines; approximately 29,500 kilometers of gas mains and pipelines; and 1.5 million gas consumer connections. It also provides asset management and operating services to its energy investments and third parties; and invests in energy infrastructure. The company is headquartered in Sydney, Australia.