Critical Analysis: Centuri (NYSE:CTRI) versus China Natural Gas (OTCMKTS:CHNGQ)

China Natural Gas (OTCMKTS:CHNGQ) and Centuri (NYSE:CTRI) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for China Natural Gas and Centuri, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Natural Gas	0	0	0	0	0.00
Centuri	2	2	2	2	2.50

Centuri has a consensus price target of $18.40, suggesting a potential downside of 11.50%. Given China Natural Gas’ higher possible upside, analysts clearly believe China Natural Gas is more favorable than Centuri.

Profitability

This table compares China Natural Gas and Centuri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Natural Gas	N/A	N/A	N/A
Centuri	-8.90%	-55.33%	-9.48%

Valuation & Earnings

This table compares China Natural Gas and Centuri”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Natural Gas	N/A	N/A	N/A	N/A	N/A
Centuri	$2.90 billion	0.63	-$186.18 million	N/A	N/A

China Natural Gas has higher earnings, but lower revenue than Centuri.

About China Natural Gas

China Natural Gas, Inc., an integrated natural gas operator, engages in the sale and distribution of natural gas and gasoline to commercial, industrial, and residential customers in the People's Republic of China. The company is primarily involved in the distribution of compressed natural gas (CNG) through its variable interest entity-owned CNG fueling stations. As of December 31, 2012, it operated 31 CNG fueling stations, including 20 CNG fueling stations in Shaanxi Province, 10 CNG fueling stations in Henan Province, and 1 CNG fueling station in Hubei Province. It also installs natural gas pipelines, as well as distributes and sells piped natural gas to residential and commercial customers through a high pressure pipeline network of approximately 120 kilometers in the city of Xi'an in Shaanxi Province, including Lantian County; the districts of Lintong and Baqiao in Shaanxi Province; and the city of Lingbao in Henan Province. As of the above date, the company had approximately 122,020 residential and commercial customers for its pipeline network, as well as operated 4 automobile conversion sites for converting gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. The company is based in Xi'an, the People's Republic of China. On July 2, 2014, the involuntary petition of China Natural Gas, Inc. for reorganization under Chapter 11 was converted to Chapter 7. The involuntary petition was filed under Chapter 11 on February 8, 2013.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.