Financial Contrast: Atmos Energy (NYSE:ATO) vs. ENN Energy (OTCMKTS:XNGSY)

ENN Energy (OTCMKTS:XNGSY) and Atmos Energy (NYSE:ATO) are both large-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Risk and Volatility

ENN Energy has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Atmos Energy has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares ENN Energy and Atmos Energy’s 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
Atmos Energy	25.05%	9.00%	4.35%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ENN Energy and Atmos Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENN Energy	0	1	0	0	2.00
Atmos Energy	0	9	3	1	2.38

Atmos Energy has a consensus target price of $170.44, indicating a potential downside of 2.60%. Given Atmos Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Atmos Energy is more favorable than ENN Energy.

Insider and Institutional Ownership

90.2% of Atmos Energy shares are owned by institutional investors. 0.5% of Atmos Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares ENN Energy and Atmos Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENN Energy	$15.28 billion	0.67	$832.79 million	N/A	N/A
Atmos Energy	$4.62 billion	6.08	$1.04 billion	$7.49	23.36

Atmos Energy has lower revenue, but higher earnings than ENN Energy.

Dividends

ENN Energy pays an annual dividend of $0.51 per share and has a dividend yield of 1.4%. Atmos Energy pays an annual dividend of $4.00 per share and has a dividend yield of 2.3%. Atmos Energy pays out 53.4% of its earnings in the form of a dividend. Atmos Energy has raised its dividend for 41 consecutive years. Atmos Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Atmos Energy beats ENN Energy on 14 of the 16 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 Atmos Energy

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states. This segment distributes natural gas to approximately 3.3 million residential, commercial, public authority, and industrial customers; and owned 73,689 miles of underground distribution and transmission mains. The Pipeline and Storage segment engages in the pipeline and storage operations. This segment transports natural gas for third parties and manages five underground storage facilities in Texas; provides ancillary services customary to the pipeline industry, including parking arrangements, lending, and inventory sales; and owned 5,645 miles of gas transmission lines. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.