Clean Energy Fuels (NASDAQ:CLNE – Get Free Report) and Atmos Energy (NYSE:ATO – Get Free Report) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Volatility and Risk
Clean Energy Fuels has a beta of 2.69, meaning that its stock price is 169% more volatile than the S&P 500. Comparatively, Atmos Energy has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Profitability
This table compares Clean Energy Fuels and Atmos Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clean Energy Fuels | -48.40% | -27.98% | -15.71% |
| Atmos Energy | 25.05% | 9.00% | 4.35% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clean Energy Fuels | 0 | 1 | 3 | 1 | 3.00 |
| Atmos Energy | 0 | 7 | 4 | 1 | 2.50 |
Clean Energy Fuels presently has a consensus target price of $3.59, indicating a potential upside of 39.15%. Atmos Energy has a consensus target price of $161.82, indicating a potential downside of 5.25%. Given Clean Energy Fuels’ stronger consensus rating and higher probable upside, research analysts clearly believe Clean Energy Fuels is more favorable than Atmos Energy.
Earnings and Valuation
This table compares Clean Energy Fuels and Atmos Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clean Energy Fuels | $420.58 million | 1.35 | -$83.07 million | ($0.90) | -2.87 |
| Atmos Energy | $4.17 billion | 6.58 | $1.04 billion | $7.28 | 23.46 |
Atmos Energy has higher revenue and earnings than Clean Energy Fuels. Clean Energy Fuels is trading at a lower price-to-earnings ratio than Atmos Energy, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
49.9% of Clean Energy Fuels shares are held by institutional investors. Comparatively, 90.2% of Atmos Energy shares are held by institutional investors. 4.3% of Clean Energy Fuels shares are held by insiders. Comparatively, 0.5% of Atmos Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Atmos Energy beats Clean Energy Fuels on 10 of the 14 factors compared between the two stocks.
About Clean Energy Fuels
Clean Energy Fuels Corp. provides natural gas as alternative fuels for vehicle fleets and related fueling solutions in the United States and Canada. It supplies renewable natural gas (RNG), compressed natural gas (CNG), and liquefied natural gas (LNG) for medium and heavy-duty vehicles; and offers operation and maintenance services for public and private vehicle fleet customer stations. The company also designs, builds, operates, and maintains vehicle fueling stations; and sells and services compressors and other equipment that are used in RNG production and fueling stations. In addition, it transports and sells CNG, RNG, and LNG through virtual natural gas pipelines and interconnects; sells U.S. federal, state, and local government credits, such as RNG as a vehicle fuel, including Renewable Identification Numbers and Low Carbon Fuel Standards credits; and obtains federal, state, and local credits, grants, and incentives. Further, the company focuses on developing, owning, and operating dairy and other livestock waste RNG projects. It serves heavy-duty trucking, airports, refuse, public transit, industrial, and institutional energy users, as well as government fleets. Clean Energy Fuels Corp. was incorporated in 2001 and is headquartered in Newport Beach, California.
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.
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