Critical Contrast: Northwest Natural Gas (NYSE:NWN) versus ENN Energy (OTCMKTS:XNGSY)

ENN Energy (OTCMKTS:XNGSY) and Northwest Natural Gas (NYSE:NWN) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares ENN Energy and Northwest Natural Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENN Energy	N/A	N/A	N/A
Northwest Natural Gas	8.34%	8.60%	2.25%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ENN Energy and Northwest Natural Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENN Energy	1	0	0	0	1.00
Northwest Natural Gas	0	2	1	0	2.33

Northwest Natural Gas has a consensus price target of $48.00, indicating a potential upside of 8.62%. Given Northwest Natural Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Northwest Natural Gas is more favorable than ENN Energy.

Insider and Institutional Ownership

75.1% of Northwest Natural Gas shares are owned by institutional investors. 0.9% of Northwest Natural Gas shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares ENN Energy and Northwest Natural Gas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENN Energy	$15.28 billion	0.61	$832.79 million	N/A	N/A
Northwest Natural Gas	$1.24 billion	1.44	$78.87 million	$2.53	17.47

ENN Energy has higher revenue and earnings than Northwest Natural Gas.

Risk & Volatility

ENN Energy has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Northwest Natural Gas has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Dividends

ENN Energy pays an annual dividend of $2.02 per share and has a dividend yield of 6.1%. Northwest Natural Gas pays an annual dividend of $1.96 per share and has a dividend yield of 4.4%. Northwest Natural Gas pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northwest Natural Gas has increased its dividend for 70 consecutive years.

Summary

Northwest Natural Gas beats ENN Energy on 11 of the 15 factors compared between the two stocks.

About ENN Energy

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructure in the People's Republic of China. It operates through Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Value Added Business segments. The company also distributes and sells piped gas, liquefied natural gas (LNG), and other multi-energy products; operates vehicle gas refuelling stations; and provides services related to low-carbon integrated solutions. In addition, it is involved in the integrated energy business; retail of gas pipelines, and related materials and equipment; transportation of oil products and gas; and sourcing and sell of LNG, as well as wholesale and retail of LNG, CNG, gas equipment, appliances, and others; and provision of financial services. The company serves residential, commercial, and industrial customers. ENN Energy Holdings Limited was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. The company was founded in 1989 and is headquartered in Langfang, China.

About Northwest Natural Gas

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, and industrial customers in the United States. The company operates a mist gas storage facility contracted to other utilities, third-party marketers, and electric generators; offers natural gas asset management services; and operates an appliance retail center. It also engages in gas storage, water and wastewater, non-regulated renewable natural gas, and other investment businesses. In addition, the company provides natural gas service in Oregon and southwest Washington; and water and wastewater connections. Northwest Natural Holding Company was founded in 1859 and is headquartered in Portland, Oregon.