Reviewing National Fuel Gas (NYSE:NFG) and Chesapeake Utilities (NYSE:CPK)
by Tristan Rich · The Markets DailyChesapeake Utilities (NYSE:CPK – Get Free Report) and National Fuel Gas (NYSE:NFG – Get Free Report) are both mid-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Earnings and Valuation
This table compares Chesapeake Utilities and National Fuel Gas”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chesapeake Utilities | $930.00 million | 3.48 | $140.30 million | $6.27 | 21.40 |
| National Fuel Gas | $2.28 billion | 3.44 | $518.50 million | $7.20 | 11.45 |
National Fuel Gas has higher revenue and earnings than Chesapeake Utilities. National Fuel Gas is trading at a lower price-to-earnings ratio than Chesapeake Utilities, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Chesapeake Utilities has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, National Fuel Gas has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Chesapeake Utilities and National Fuel Gas, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chesapeake Utilities | 0 | 3 | 1 | 0 | 2.25 |
| National Fuel Gas | 0 | 2 | 1 | 1 | 2.75 |
Chesapeake Utilities presently has a consensus price target of $138.00, indicating a potential upside of 2.87%. National Fuel Gas has a consensus price target of $105.50, indicating a potential upside of 27.93%. Given National Fuel Gas’ stronger consensus rating and higher possible upside, analysts clearly believe National Fuel Gas is more favorable than Chesapeake Utilities.
Institutional & Insider Ownership
83.1% of Chesapeake Utilities shares are held by institutional investors. Comparatively, 74.0% of National Fuel Gas shares are held by institutional investors. 1.4% of Chesapeake Utilities shares are held by insiders. Comparatively, 1.3% of National Fuel Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Chesapeake Utilities pays an annual dividend of $2.94 per share and has a dividend yield of 2.2%. National Fuel Gas pays an annual dividend of $2.22 per share and has a dividend yield of 2.7%. Chesapeake Utilities pays out 46.9% of its earnings in the form of a dividend. National Fuel Gas pays out 30.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Chesapeake Utilities has increased its dividend for 22 consecutive years and National Fuel Gas has increased its dividend for 55 consecutive years. National Fuel Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Chesapeake Utilities and National Fuel Gas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chesapeake Utilities | 15.12% | 9.34% | 3.73% |
| National Fuel Gas | 26.97% | 19.04% | 7.33% |
Summary
National Fuel Gas beats Chesapeake Utilities on 12 of the 17 factors compared between the two stocks.
About Chesapeake Utilities
Chesapeake Utilities Corporation operates as an energy delivery company. The company operates through two segments, Regulated Energy and Unregulated Energy. The Regulated Energy segment natural gas distribution operations in central and southern Delaware, Maryland's eastern shore, and Florida; regulated natural gas transmission in the Delmarva Peninsula, Ohio, and Florida; and regulated electric distribution in northeast and northwest Florida. The Unregulated Energy segment engages in the propane operations in the Mid-Atlantic region, North Carolina, South Carolina, and Florida; unregulated natural gas transmission/supply operation in central and eastern Ohio; generation of electricity and steam; provision of compressed natural gas, liquefied natural gas, and renewable natural gas transportation and pipeline solutions primarily to utilities and pipelines in the United States; and sustainable energy investments. This segment is also involved in the provision of other unregulated services, such as energy-related merchandise sale and heating, ventilation and air conditioning, and plumbing and electrical services. Chesapeake Utilities Corporation was founded in 1859 and is headquartered in Dover, Delaware.
About National Fuel Gas
National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil. The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, as well as provides gathering services to Seneca. The Utility segment sells natural gas or provides natural gas utility services to various customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.