Critical Analysis: Toho Gas (OTCMKTS:THOGF) versus Atmos Energy (NYSE:ATO)

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

Institutional and Insider Ownership

90.2% of Atmos Energy shares are held by institutional investors. Comparatively, 9.9% of Toho Gas shares are held by institutional investors. 0.5% of Atmos Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Atmos Energy and Toho Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atmos Energy	24.65%	9.01%	4.35%
Toho Gas	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and target prices for Atmos Energy and Toho Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atmos Energy	0	2	4	0	2.67
Toho Gas	0	0	0	0	N/A

Atmos Energy currently has a consensus price target of $133.17, indicating a potential upside of 3.06%. Given Atmos Energy’s higher probable upside, research analysts plainly believe Atmos Energy is more favorable than Toho Gas.

Valuation & Earnings

This table compares Atmos Energy and Toho Gas’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atmos Energy	$4.09 billion	4.76	$885.86 million	$6.67	19.37
Toho Gas	N/A	N/A	N/A	N/A	N/A

Atmos Energy has higher revenue and earnings than Toho Gas.

Summary

Atmos Energy beats Toho Gas on 8 of the 8 factors compared between the two stocks.

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.

About Toho Gas

Toho Gas Co., Ltd. engages in the gas, LPG/other energy, electric power, and other businesses in Japan and internationally. It is also involved in the development, purchase, and sale of natural gas and other energy resources; production, transportation, and sale of high-pressure gases, including LNG, LPG, and liquefied carbon dioxide; sale of coke, tar, and crude oil products; and production and sale of chemical industrial products, such as methanol and plasticizers. In addition, the company produces and sells gas, air-conditioning, kitchen, and plumbing equipment, as well as home and gas appliances; sells paving materials, automobiles, daily sundries, and foodstuffs; designs, administers, and constructs civil engineering, construction, wiring, piping, and machinery projects; and designs, produces, and sells equipment for the prevention of air and water pollution, waste treatment, and soil reclamation projects. Further, it is involved in the buying and selling, leasing, and management of real estate; provision of data processing and related services; production, lease, and sale of computer hardware and software; security business; and sale and lease of security and disaster prevention equipment. Additionally, the company engages in the management of cooking and cultural classrooms, and sport facilities; restaurant and travel agent proxy business; general leasing and financing activities; non-life insurance agency and life insurance soliciting business; and survey, research, and consulting, as well as other businesses. The company is also involved in designs and constructs plants and facilities; information processing services; safety inspections of gas equipment; sales of housing equipment; LPG piping construction; sales of coke and petroleum products; and sale of piping work and gas appliances. Toho Gas Co., Ltd. was incorporated in 1922 and is headquartered in Nagoya, Japan.