Analyzing Hong Kong and China Gas (OTCMKTS:HOKCY) & Devon Energy (NYSE:DVN)

Hong Kong and China Gas (OTCMKTS:HOKCY) and Devon Energy (NYSE:DVN) are both large-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Hong Kong and China Gas and Devon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hong Kong and China Gas	N/A	N/A	N/A
Devon Energy	18.14%	22.52%	11.02%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Hong Kong and China Gas and Devon Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hong Kong and China Gas	0	0	0	0	0.00
Devon Energy	0	9	14	0	2.61

Devon Energy has a consensus target price of $48.87, suggesting a potential upside of 42.19%. Given Devon Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Devon Energy is more favorable than Hong Kong and China Gas.

Dividends

Hong Kong and China Gas pays an annual dividend of $0.02 per share and has a dividend yield of 2.9%. Devon Energy pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. Devon Energy pays out 21.1% of its earnings in the form of a dividend.

Institutional & Insider Ownership

69.7% of Devon Energy shares are owned by institutional investors. 0.7% of Devon Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Hong Kong and China Gas has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hong Kong and China Gas and Devon Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hong Kong and China Gas	$7.28 billion	1.75	$788.99 million	N/A	N/A
Devon Energy	$15.94 billion	1.40	$3.75 billion	$4.56	7.54

Devon Energy has higher revenue and earnings than Hong Kong and China Gas.

Summary

Devon Energy beats Hong Kong and China Gas on 11 of the 14 factors compared between the two stocks.

About Hong Kong and China Gas

The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas, water supply and energy services in Hong Kong and Mainland China. It is involved in the provision of smart energy, piped city-gas, upstream and midstream projects, water supply and wastewater treatment, urban waste resource utilization, and natural gas filling stations, as well as new energy exploration and utilization activities. The company develops new energy projects that are low in emissions and pollution, which includes clean coal chemical business, liquefaction of methane, etc., as well as supplies town gas. It also provides network connectivity, data center, and ICT services, as well as engineering, procurement, and construction services. In addition, the company offers consultancy and engineering contractor services, including utilities installation, infrastructure construction, and civil and building services engineering for public and private projects; and designs and manufactures gas meters and metering systems. Further, it is involved in water supply, and domestic sewage and industrial wastewater treatment activities. Additionally, the company manufactures polyethylene piping and fittings; as well as engages in the software development, solution implementation, and systems integration activities. The Hong Kong and China Gas Company Limited was founded in 1862 and is headquartered in North Point, Hong Kong.

About Devon Energy

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.