NewJersey Resources (NYSE:NJR – Get Free Report) and ENN Energy (OTCMKTS:XNGSY – Get Free Report) are both mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Dividends
NewJersey Resources pays an annual dividend of $1.80 per share and has a dividend yield of 3.8%. ENN Energy pays an annual dividend of $2.02 per share and has a dividend yield of 6.2%. NewJersey Resources pays out 44.0% of its earnings in the form of a dividend. NewJersey Resources has raised its dividend for 29 consecutive years.
Earnings & Valuation
This table compares NewJersey Resources and ENN Energy”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
NewJersey Resources | $1.80 billion | 2.63 | $289.77 million | $4.09 | 11.49 |
ENN Energy | $15.28 billion | 0.60 | $832.79 million | N/A | N/A |
ENN Energy has higher revenue and earnings than NewJersey Resources.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for NewJersey Resources and ENN Energy, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
NewJersey Resources | 0 | 4 | 2 | 0 | 2.33 |
ENN Energy | 0 | 0 | 0 | 0 | 0.00 |
NewJersey Resources presently has a consensus price target of $51.4286, suggesting a potential upside of 9.41%. Given NewJersey Resources’ stronger consensus rating and higher probable upside, equities research analysts clearly believe NewJersey Resources is more favorable than ENN Energy.
Risk & Volatility
NewJersey Resources has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, ENN Energy has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.
Profitability
This table compares NewJersey Resources and ENN Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
NewJersey Resources | 19.64% | 17.08% | 5.60% |
ENN Energy | N/A | N/A | N/A |
Institutional and Insider Ownership
71.0% of NewJersey Resources shares are held by institutional investors. 0.7% of NewJersey Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
NewJersey Resources beats ENN Energy on 11 of the 15 factors compared between the two stocks.
About NewJersey Resources
New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 576,000 customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates clean energy projects, including commercial and residential solar installation situated in New Jersey, Rhode Island, New York, Connecticut, Michigan, and Indiana. The Energy Services segment maintains and operates natural gas transportation and storage capacity contracts, as well as provides physical wholesale energy, retail energy and energy management services in the United States and Canada. The Storage and Transportation segment invests in invests in energy-related ventures. It provides heating, ventilation, and cooling services; sales and installation of appliances; offers solar equipment installation, and plumbing repair and installation services; and holds commercial real estate properties. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.
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.
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