Head-To-Head Review: Suburban Propane Partners (NYSE:SPH) versus Towngas Smart Energy (OTCMKTS:TGASF)

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

Dividends

Towngas Smart Energy pays an annual dividend of $0.08 per share and has a dividend yield of 18.7%. Suburban Propane Partners pays an annual dividend of $1.30 per share and has a dividend yield of 7.3%. Towngas Smart Energy pays out 20.1% of its earnings in the form of a dividend. Suburban Propane Partners pays out 66.3% 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. Towngas Smart Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Towngas Smart Energy and Suburban Propane Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Towngas Smart Energy	N/A	N/A	N/A	$0.40	1.08
Suburban Propane Partners	$1.43 billion	0.83	$106.57 million	$1.96	9.08

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

Institutional and Insider Ownership

12.3% of Towngas Smart Energy shares are owned by institutional investors. Comparatively, 30.9% of Suburban Propane Partners shares are owned by institutional investors. 1.3% of Suburban Propane Partners shares 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.

Profitability

This table compares Towngas Smart Energy and Suburban Propane Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Towngas Smart Energy	N/A	N/A	N/A
Suburban Propane Partners	9.37%	18.57%	5.25%

Analyst Recommendations

This is a summary of current recommendations and price targets for Towngas Smart Energy and Suburban Propane Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Towngas Smart Energy	0	0	0	0	0.00
Suburban Propane Partners	0	1	0	2	3.33

Summary

Suburban Propane Partners beats Towngas Smart Energy on 10 of the 12 factors compared between the two stocks.

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.

About Suburban Propane Partners

Suburban Propane Partners, L.P., through its subsidiaries, engages in the retail marketing and distribution of propane, renewable propane, fuel oil, and refined fuels in the United States. The company operates through four segments: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. The Propane segment is involved in the retail distribution of propane for space heating, water heating, cooking, and clothes drying for use as a motor fuel in internal combustion engines to power over-the-road vehicles, forklifts, and stationary engines, as well as to fire furnaces as a cutting gas to the industrial customers; and for tobacco curing, crop drying, poultry brooding, and weed control in the agricultural markets. It also engages in the wholesale distribution of propane to industrial end users. Its Fuel Oil and Refined Fuels segment engages in the retail distribution of fuel oil, diesel, kerosene, and gasoline to residential and commercial customers for use in primarily as a source of heat in homes and buildings. The Natural Gas and Electricity segment markets natural gas and electricity to residential and commercial customers in the deregulated energy markets in New York and Pennsylvania. The All Other segment sells, installs, and services a range of home comfort equipment, including whole-house heating products, air cleaners, humidifiers, and space heaters. The company serves residential, commercial, industrial, and agricultural customers primarily in the east and west coast regions of the United States, as well as portions of the Midwest region of the United States and Alaska. Suburban Propane Partners, L.P. was founded in 1945 and is based in Whippany, New Jersey.