Snam (SNMRY) versus The Competition Critical Survey
by Renee Jackson · The Cerbat GemSnam (OTCMKTS:SNMRY – Get Free Report) is one of 46 public companies in the “Gas Utilities” industry, but how does it compare to its competitors? We will compare Snam to related companies based on the strength of its analyst recommendations, risk, profitability, earnings, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
0.0% of Snam shares are owned by institutional investors. Comparatively, 52.7% of shares of all “Gas Utilities” companies are owned by institutional investors. 10.3% of shares of all “Gas Utilities” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Snam and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Snam | N/A | N/A | N/A |
| Snam Competitors | 20.21% | 7.87% | 3.65% |
Dividends
Snam pays an annual dividend of $0.46 per share and has a dividend yield of 3.4%. Snam pays out 70.3% of its earnings in the form of a dividend. As a group, “Gas Utilities” companies pay a dividend yield of 12.3% and pay out 17.4% of their earnings in the form of a dividend. Snam lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
Analyst Recommendations
This is a breakdown of current recommendations for Snam and its competitors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Snam | 0 | 3 | 0 | 1 | 2.50 |
| Snam Competitors | 457 | 1372 | 1146 | 53 | 2.26 |
As a group, “Gas Utilities” companies have a potential upside of 12.10%. Given Snam’s competitors higher possible upside, analysts plainly believe Snam has less favorable growth aspects than its competitors.
Earnings & Valuation
This table compares Snam and its competitors revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Snam | N/A | N/A | 20.55 |
| Snam Competitors | $2.96 billion | $316.42 million | 35.86 |
Snam’s competitors have higher revenue and earnings than Snam. Snam is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Summary
Snam competitors beat Snam on 11 of the 13 factors compared.
About Snam
Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure. The company operates through Transportation, Storage, Regasification, Energy Transition, and other segments. It provides natural gas transportation and dispatching services; and owns and manages liquified natural gas (LNG) regasification plants. The company also offers natural gas storage services through an integrated group of infrastructure comprising deposits, wells, gas treatment and compression plants, and the operational dispatching systems; and operates storage concessions located in Lombardy, Emilia-Romagna, and Abruzzo. In addition, it provides energy efficiency solutions for companies, condominiums, tertiary, and public administration sectors; and invests, constructs, develops, and operates biogas and biomethane plants. Further, the company offers engineering support and consulting services in technical and specialized fields; and sells automotive compressed natural gas (CNG) compressors. It operates a natural gas transportation network of approximately 38,000 kilometers in Italy, Austria, Tunisia, Egypt, the United Arab Emirates, France, Greece, and the United Kingdom. The company was formerly known as Snam Rete Gas S.p.A. and changed its name to Snam S.p.A. in January 2012. Snam S.p.A. was founded in 1941 and is headquartered in San Donato Milanese, Italy.