The Hong Kong and China Gas (OTCMKTS:HOKCY) and Centennial Resource Development (OTCMKTS:CDEV) Critical Analysis

The Hong Kong and China Gas (OTCMKTS:HOKCY) and Centennial Resource Development (NASDAQ:CDEV) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Earnings & Valuation

This table compares The Hong Kong and China Gas and Centennial Resource Development’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Hong Kong and China Gas $5.19 billion 5.13 $889.05 million N/A N/A
Centennial Resource Development $944.33 million 0.28 $15.80 million $0.19 5.01

The Hong Kong and China Gas has higher revenue and earnings than Centennial Resource Development.

Analyst Ratings

This is a breakdown of current recommendations and price targets for The Hong Kong and China Gas and Centennial Resource Development, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Hong Kong and China Gas 1 0 0 0 1.00
Centennial Resource Development 8 8 3 0 1.74

Centennial Resource Development has a consensus target price of $3.75, indicating a potential upside of 293.78%. Given Centennial Resource Development’s stronger consensus rating and higher probable upside, analysts plainly believe Centennial Resource Development is more favorable than The Hong Kong and China Gas.

Risk and Volatility

The Hong Kong and China Gas has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Centennial Resource Development has a beta of 7.39, meaning that its share price is 639% more volatile than the S&P 500.

Profitability

This table compares The Hong Kong and China Gas and Centennial Resource Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Hong Kong and China Gas N/A N/A N/A
Centennial Resource Development -56.81% -0.90% -0.63%

Institutional and Insider Ownership

0.0% of The Hong Kong and China Gas shares are held by institutional investors. Comparatively, 93.0% of Centennial Resource Development shares are held by institutional investors. 31.9% of Centennial Resource Development shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

About The Hong Kong and China Gas

The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas in Hong Kong and Mainland China. It is involved in the provision of liquefied natural gas, methanol, and coal and other chemicals; conversion and utilization of biomass, and industrial and agricultural waste; and operation of natural gas refilling stations, piped city-gas projects, upstream and midstream developments, water and wastewater treatment projects, energy exploration and utilization ventures, and Aviation fuel facilities. The company operates a pipeline network of 3,600 km gas pipes severing approximately 1.9 million customers. It also provides network connectivity, and data center and cloud computing services; and engages in the software development, solution implementation, and systems integration activities. 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 production and distribution, wastewater treatment, industrial wastewater treatment, water reuse, network construction, and purified water businesses serving 1.2 million customers through a pipeline network of approximately 7,000 km. Additionally, the company manufactures polyethylene piping and fittings; and engages in the customers center, café, restaurant, retail sale, automatic meter reading system development, laboratory testing, payment gateway and related, project management, landfill gas project, financing, logistics, oil, research and development, property development, and securities investment activities. The Hong Kong and China Gas Company Limited was founded in 1862 and is headquartered in North Point, Hong Kong.

About Centennial Resource Development

Centennial Resource Development, Inc., an independent oil and natural gas company, focuses on the development of unconventional oil and associated liquids-rich natural gas reserves in the United States. The company's assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks primarily in Reeves County in West Texas and Lea County in New Mexico. As of December 31, 2018, it leased or acquired approximately 80,223 net acres; and owned 1,597 net mineral acres in the Delaware Basin. The company was formerly known as Silver Run Acquisition Corporation and changed its name to Centennial Resource Development, Inc. in October 2016. Centennial Resource Development, Inc. was incorporated in 2015 and is headquartered in Denver, Colorado.

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