Financial Contrast: Towngas Smart Energy (OTCMKTS:TGASF) versus Spire (NYSE:SR)

Spire (NYSE:SR) and Towngas Smart Energy (OTCMKTS:TGASF) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Spire and Towngas Smart Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spire	0	5	5	2	2.75
Towngas Smart Energy	0	0	0	0	0.00

Spire presently has a consensus price target of $94.50, suggesting a potential upside of 15.08%. Given Spire’s stronger consensus rating and higher probable upside, equities analysts clearly believe Spire is more favorable than Towngas Smart Energy.

Dividends

Spire pays an annual dividend of $3.30 per share and has a dividend yield of 4.0%. Towngas Smart Energy pays an annual dividend of $0.08 per share and has a dividend yield of 18.7%. Spire pays out 36.8% of its earnings in the form of a dividend. Towngas Smart Energy pays out 20.1% 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. Spire has increased its dividend for 22 consecutive years. Towngas Smart Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

87.4% of Spire shares are held by institutional investors. Comparatively, 12.3% of Towngas Smart Energy shares are held by institutional investors. 2.3% of Spire shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Spire and Towngas Smart Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spire	21.48%	8.65%	2.21%
Towngas Smart Energy	N/A	N/A	N/A

Earnings & Valuation

This table compares Spire and Towngas Smart Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spire	$2.48 billion	1.96	$271.70 million	$8.97	9.15
Towngas Smart Energy	N/A	N/A	N/A	$0.40	1.08

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

Summary

Spire beats Towngas Smart Energy on 13 of the 15 factors compared between the two stocks.

About Spire

Spire Inc., together with its subsidiaries, engages in the purchase, retail distribution, and sale of natural gas to residential, commercial, industrial, and other end-users of natural gas in the United States. The company operates through three segments: Gas Utility, Gas Marketing, and Midstream. It is also involved in the marketing of natural gas and related services; and transportation and storage of natural gas. In addition, the company engages in the operation of propane through its propane pipeline, risk management, and other activities. The company was formerly known as The Laclede Group, Inc. and changed its name to Spire Inc. in April 2016. Spire Inc. was founded in 1857 and is based in Saint Louis, Missouri.

About Towngas Smart Energy

Towngas Smart Energy Company Limited, an investment holding company, sells and distributes piped gas in the People's Republic of China. The company operates through three segments, Sales and Distribution of Piped Gas and Related Products; Gas Connection; and Extended Business. It engages in the provision of natural gas and related services; construction of gas pipelines; sale of gas related household appliances; and other value-added services. The company also offers financing and engineering works services, smart energy solutions, and upstream and midstream services; and operates vehicle gas refilling stations. The company was formerly known as Towngas China Company Limited and changed its name to Towngas Smart Energy Company Limited in December 2021. The company was founded in 1998 and is headquartered in North Point, Hong Kong. Towngas Smart Energy Company Limited is a subsidiary of The Hong Kong and China Gas Company Limited.