Noble Energy (NYSE: NBL) and Transportadora De Gas Sa Ord B (NYSE:TGS) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

94.2% of Noble Energy shares are owned by institutional investors. Comparatively, 8.9% of Transportadora De Gas Sa Ord B shares are owned by institutional investors. 2.3% of Noble Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Noble Energy and Transportadora De Gas Sa Ord B, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noble Energy 0 2 18 0 2.90
Transportadora De Gas Sa Ord B 1 0 1 0 2.00

Noble Energy presently has a consensus target price of $39.16, suggesting a potential upside of 24.31%. Transportadora De Gas Sa Ord B has a consensus target price of $25.00, suggesting a potential upside of 8.74%. Given Noble Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Noble Energy is more favorable than Transportadora De Gas Sa Ord B.

Dividends

Noble Energy pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Transportadora De Gas Sa Ord B does not pay a dividend. Noble Energy pays out -10.0% of its earnings in the form of a dividend.

Risk & Volatility

Noble Energy has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Transportadora De Gas Sa Ord B has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares Noble Energy and Transportadora De Gas Sa Ord B’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noble Energy $3.49 billion 4.39 -$998.00 million ($3.99) -7.89
Transportadora De Gas Sa Ord B $501.12 million 7.29 $63.00 million $0.91 25.26

Transportadora De Gas Sa Ord B has lower revenue, but higher earnings than Noble Energy. Noble Energy is trading at a lower price-to-earnings ratio than Transportadora De Gas Sa Ord B, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Noble Energy and Transportadora De Gas Sa Ord B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noble Energy -45.85% 1.06% 0.49%
Transportadora De Gas Sa Ord B 21.43% 66.26% 22.54%

Summary

Noble Energy beats Transportadora De Gas Sa Ord B on 9 of the 16 factors compared between the two stocks.

Noble Energy Company Profile

Noble Energy, Inc. is an independent energy company. The Company is engaged in crude oil, natural gas and natural gas and natural gas liquids (NGLs) exploration, development, production and acquisition. The Company’s segments include: United States, including the onshore DJ Basin, Permian Basin, Eagle Ford Shale, Marcellus Shale and offshore deepwater Gulf of Mexico, as well as the consolidated accounts of Noble Midstream Partners LP (Noble Midstream Partners); Eastern Mediterranean, including offshore Israel and Cyprus; West Africa, including offshore Equatorial Guinea, Cameroon and Gabon, and Other International and Corporate, including new ventures, such as offshore the Falkland Islands, Suriname and Newfoundland. The Company’s portfolio of assets is diversified through the United States and international projects and production mix among crude oil, natural gas and NGLs. Its business focuses on both the United States unconventional basins and certain global conventional basins.

Transportadora De Gas Sa Ord B Company Profile

Transportadora de Gas del Sur S.A. is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (Liquids). The Company operates through four segments: Natural Gas Transportation Services, Liquids Production and Commercialization, Other Services and Telecommunications. The Company’s pipeline system connects gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. It also provides midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation and maintenance services. The Company transports gas through approximately 5,675 miles of pipeline, of which it owns 4,745 miles. It operates the remaining 930 miles, which are owned by the Gas Trusts.

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