Atmos Energy (ATO) and New Fortress Energy (NFE) Financial Contrast

New Fortress Energy (NASDAQ:NFE) and Atmos Energy (NYSE:ATO) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
New Fortress Energy N/A N/A N/A
Atmos Energy 14.39% 9.17% 3.80%

Insider and Institutional Ownership

79.4% of Atmos Energy shares are held by institutional investors. 1.4% of Atmos Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for New Fortress Energy and Atmos Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Fortress Energy 0 2 6 0 2.75
Atmos Energy 1 2 4 0 2.43

New Fortress Energy currently has a consensus price target of $19.57, indicating a potential upside of 81.72%. Atmos Energy has a consensus price target of $100.43, indicating a potential upside of 1.26%. Given New Fortress Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe New Fortress Energy is more favorable than Atmos Energy.

Dividends

Atmos Energy pays an annual dividend of $2.10 per share and has a dividend yield of 2.1%. New Fortress Energy does not pay a dividend. Atmos Energy pays out 52.5% of its earnings in the form of a dividend. Atmos Energy has increased its dividend for 36 consecutive years.

Earnings and Valuation

This table compares New Fortress Energy and Atmos Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Fortress Energy N/A N/A N/A N/A N/A
Atmos Energy $3.12 billion 3.72 $603.06 million $4.00 24.80

Atmos Energy has higher revenue and earnings than New Fortress Energy.

Summary

Atmos Energy beats New Fortress Energy on 8 of the 12 factors compared between the two stocks.

About New Fortress Energy

New Fortress Energy LLC operates as an integrated gas-to-power company. The company's activities include natural gas procurement and liquefaction; provision of logistics and shipping services; development and operation of terminals; and conversion or development of natural gas-fired generation. It intends to serve power, transportation, and industrial users of natural gas and LNG. The company was founded in 1998 and is based in New York, New York. New Fortress Energy LLC is a subsidiary of Fortress Investment Group LLC.

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 Distribution, and Pipeline and Storage segments. 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 three million residential, commercial, public authority, and industrial customers. As of September 30, 2018, it owned 70,071 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 reservoirs in Texas; and provides ancillary services to the pipeline industry, including parking arrangements, lending, and inventory sales. It owns 5,678 miles of gas transmission lines. The company was founded in 1906 and is headquartered in Dallas, Texas.

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