Critical Comparison: Snam (SNMRY) versus Its Peers

Snam (OTCMKTS:SNMRY) is one of 46 public companies in the “Gas Utilities” industry, but how does it weigh in compared to its rivals? We will compare Snam to similar businesses based on the strength of its earnings, profitability, valuation, analyst recommendations, institutional ownership, risk and dividends.

Institutional and Insider Ownership

0.0% of Snam shares are held by institutional investors. Comparatively, 52.7% of shares of all “Gas Utilities” companies are held by institutional investors. 10.4% of shares of all “Gas Utilities” companies are held by 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.

Valuation and Earnings

This table compares Snam and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Snam	N/A	N/A	20.23
Snam Competitors	$2.96 billion	$316.42 million	12.87

Snam’s rivals have higher revenue and earnings than Snam. Snam is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Snam pays an annual dividend of $0.46 per share and has a dividend yield of 3.5%. Snam pays out 70.3% of its earnings in the form of a dividend. As a group, “Gas Utilities” companies pay a dividend yield of 12.3% and pay out 17.4% of their earnings in the form of a dividend. Snam lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Snam and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snam	N/A	N/A	N/A
Snam Competitors	20.21%	7.88%	3.65%

Analyst Ratings

This is a summary of recent ratings for Snam and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snam	0	3	0	1	2.50
Snam Competitors	456	1366	1141	53	2.26

As a group, “Gas Utilities” companies have a potential upside of 12.92%. Given Snam’s rivals higher possible upside, analysts clearly believe Snam has less favorable growth aspects than its rivals.

Summary

Snam rivals beat Snam on 10 of the 13 factors compared.

About Snam

Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure. The company operates through Transportation, Storage, Regasification, Energy Transition, and other segments. It provides natural gas transportation and dispatching services; and owns and manages liquified natural gas (LNG) regasification plants. The company also offers natural gas storage services through an integrated group of infrastructure comprising deposits, wells, gas treatment and compression plants, and the operational dispatching systems; and operates storage concessions located in Lombardy, Emilia-Romagna, and Abruzzo. In addition, it provides energy efficiency solutions for companies, condominiums, tertiary, and public administration sectors; and invests, constructs, develops, and operates biogas and biomethane plants. Further, the company offers engineering support and consulting services in technical and specialized fields; and sells automotive compressed natural gas (CNG) compressors. It operates a natural gas transportation network of approximately 38,000 kilometers in Italy, Austria, Tunisia, Egypt, the United Arab Emirates, France, Greece, and the United Kingdom. The company was formerly known as Snam Rete Gas S.p.A. and changed its name to Snam S.p.A. in January 2012. Snam S.p.A. was founded in 1941 and is headquartered in San Donato Milanese, Italy.