Piedmont Natural Gas (NYSE: PNY) and Atmos Energy Corporation (NYSE:ATO) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitabiliy.
Profitability
This table compares Piedmont Natural Gas and Atmos Energy Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Piedmont Natural Gas | 19.00% | 22.34% | 6.57% |
| Atmos Energy Corporation | N/A | 10.59% | 3.80% |
Volatility and Risk
Piedmont Natural Gas has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Atmos Energy Corporation has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.
Institutional and Insider Ownership
61.5% of Piedmont Natural Gas shares are held by institutional investors. Comparatively, 72.1% of Atmos Energy Corporation shares are held by institutional investors. 1.4% of Piedmont Natural Gas shares are held by insiders. Comparatively, 1.6% of Atmos Energy Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Piedmont Natural Gas and Atmos Energy Corporation’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Piedmont Natural Gas | N/A | N/A | N/A | $1.72 | 34.90 |
| Atmos Energy Corporation | $3.45 billion | 2.70 | $1.03 billion | $3.74 | 23.42 |
Atmos Energy Corporation has higher revenue and earnings than Piedmont Natural Gas. Atmos Energy Corporation is trading at a lower price-to-earnings ratio than Piedmont Natural Gas, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Piedmont Natural Gas and Atmos Energy Corporation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Piedmont Natural Gas | 0 | 0 | 0 | 0 | N/A |
| Atmos Energy Corporation | 1 | 0 | 3 | 0 | 2.50 |
Atmos Energy Corporation has a consensus price target of $86.25, indicating a potential downside of 1.53%. Given Atmos Energy Corporation’s higher probable upside, analysts clearly believe Atmos Energy Corporation is more favorable than Piedmont Natural Gas.
Dividends
Piedmont Natural Gas pays an annual dividend of $1.36 per share and has a dividend yield of 2.3%. Atmos Energy Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. Piedmont Natural Gas pays out 79.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Atmos Energy Corporation pays out 48.1% of its earnings in the form of a dividend. Piedmont Natural Gas has increased its dividend for 34 consecutive years and Atmos Energy Corporation has increased its dividend for 38 consecutive years.
Summary
Atmos Energy Corporation beats Piedmont Natural Gas on 8 of the 13 factors compared between the two stocks.
Piedmont Natural Gas Company Profile
Piedmont Natural Gas Company, Inc. is an energy services company. The Company’s principal business is the distribution of natural gas to residential, commercial, industrial and power generation customers in portions of North Carolina, South Carolina and Tennessee, including customers served by municipalities, which are its wholesale customers. The Company operates through three segments: regulated utility, regulated non-utility activities and unregulated non-utility activities. The regulated utility segment includes operating a natural gas distribution system. The regulated non-utility activities segment consists of its equity method investments in regulated energy-related joint ventures that are held by its subsidiaries. The unregulated non-utility activities segment consists primarily of its equity method investment in an unregulated energy-related joint venture that is held by its subsidiary.
Atmos Energy Corporation Company Profile
Atmos Energy Corporation is engaged primarily in the regulated natural gas distribution and pipeline businesses, as well as other nonregulated natural gas businesses. The Company operates through three segments: regulated distribution segment, which includes its regulated distribution and related sales operations; regulated pipeline segment, which includes the 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. The Company’s nonregulated businesses provide natural gas management, marketing, transportation and storage services to municipalities, local gas distribution companies, including certain of its natural gas distribution divisions and industrial customers principally in the Midwest and Southeast.
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