Critical Analysis: GAIL (India) (GAILF) versus The Competition

Insider & Institutional Ownership

0.4% of GAIL (India) shares are owned by institutional investors. Comparatively, 52.7% of shares of all “Gas Utilities” companies are owned by institutional investors. 10.3% of shares of all “Gas Utilities” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares GAIL (India) and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GAIL (India)	N/A	N/A	0.04
GAIL (India) Competitors	$2.96 billion	$316.42 million	13.22

GAIL (India)’s competitors have higher revenue and earnings than GAIL (India). GAIL (India) is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

GAIL (India) pays an annual dividend of $60.15 per share and has a dividend yield of 650.6%. GAIL (India) pays out 26.6% of its earnings in the form of a dividend. As a group, “Gas Utilities” companies pay a dividend yield of 12.1% and pay out 17.4% of their earnings in the form of a dividend.

Profitability

This table compares GAIL (India) and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GAIL (India)	N/A	N/A	N/A
GAIL (India) Competitors	20.36%	8.29%	3.65%

Summary

GAIL (India) competitors beat GAIL (India) on 8 of the 9 factors compared.

About GAIL (India)

GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. The company operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments. It is involved in the transmission and marketing of natural gas to the power, fertilizer, industrial, automotive, petrochemicals, and domestic and commercial sectors. The company also markets liquefied petroleum gas (LPG), propane, pentane, naphtha, mixed fuel oil, polyethylene, and polypropylene; and manufactures petrochemicals, such as high-density polyethylene and linear low-density polyethylene under the brand names of G-Lex and G-Lene. In addition, it generates wind and solar power. Further, the company engages in the chartering of LNG vessels. The company was incorporated in 1984 and is based in New Delhi, India.