Engie (ENGIY) and Atmos Energy (ATO) Critical Review

Engie (OTCMKTS: ENGIY) and Atmos Energy (NYSE:ATO) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

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This is a breakdown of recent ratings for Engie and Atmos Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Engie 0 0 0 0 N/A
Atmos Energy 1 1 3 0 2.40

Atmos Energy has a consensus target price of $83.25, indicating a potential downside of 1.07%. Given Atmos Energy’s higher probable upside, analysts clearly believe Atmos Energy is more favorable than Engie.

Dividends

Engie pays an annual dividend of $0.77 per share and has a dividend yield of 4.5%. Atmos Energy pays an annual dividend of $1.94 per share and has a dividend yield of 2.3%. Atmos Energy pays out 53.9% of its earnings in the form of a dividend. Atmos Energy has raised its dividend for 35 consecutive years.

Profitability

This table compares Engie and Atmos Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Engie N/A N/A N/A
Atmos Energy N/A 10.39% 3.93%

Volatility & Risk

Engie has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Atmos Energy has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Earnings and Valuation

This table compares Engie and Atmos Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Engie $73.46 billion 0.57 $1.61 billion N/A N/A
Atmos Energy $2.76 billion 3.38 $396.42 million $3.60 23.38

Engie has higher revenue and earnings than Atmos Energy.

Institutional & Insider Ownership

0.2% of Engie shares are held by institutional investors. Comparatively, 72.8% of Atmos Energy shares are held by institutional investors. 1.6% of Atmos Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Atmos Energy beats Engie on 8 of the 13 factors compared between the two stocks.

About Engie

Engie SA, formerly GDF Suez SA, is a France-based natural gas and electricity supplier. Its operations are organized in five business lines: Energy Europe, engaged in the production of electricity and distribution and supplying of gas in continental Europe; Energy International which supplies power within North and Latin America, the United Kingdom, Turkey, Middle East, Asia and Africa; Global Gas & LNG, which includes exploration and production of gas and oil, procurement and routing of gas and Liquefied Natural Gas (LNG) and supplying accounts in Europe; Infrastructures, which operates the transport, supply and storage of natural gas; and Energy Services, providing multi-technical services in the areas of engineering, installation or energy services. The Company operates through La Compagnie du Vent, CNN MCO, which manages of all types of vessels, Siradel SAS and Green Charge Networks LLC, a Santa Clara-based manufacturer of energy storage systems and EV-Box BV, among others.

About Atmos Energy

Atmos Energy Corporation is a fully-regulated, natural-gas-only distributor engaged primarily in the regulated natural gas distribution and pipeline businesses, as well as other nonregulated natural gas businesses. It operates through three segments: regulated distribution segment, which includes its regulated distribution and related sales operations; regulated pipeline segment, which includes pipeline and storage operations of its Atmos Pipeline-Texas Division, and nonregulated segment, which includes its nonregulated natural gas management, nonregulated natural gas transmission, storage and other services. Its nonregulated businesses provide natural gas management, transportation and storage services to local gas distribution companies, including certain of its natural gas distribution divisions and industrial customers in the Midwest and Southeast. It also manages its natural gas pipeline and storage assets, including its intrastate natural gas pipeline systems in Texas.

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