Comparing Snam (OTCMKTS:SNMRF) & Brookfield Infrastructure (NASDAQ:BIPC)

Snam (OTCMKTS:SNMRF – Get Free Report) and Brookfield Infrastructure (NASDAQ:BIPC – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Snam and Brookfield Infrastructure, as provided by MarketBeat.

Get Snam alerts:

Snam currently has a consensus target price of $5.18, indicating a potential upside of 4.50%. Brookfield Infrastructure has a consensus target price of $48.00, indicating a potential upside of 2.30%. Given Snam’s higher possible upside, equities analysts plainly believe Snam is more favorable than Brookfield Infrastructure.

Dividends

Snam pays an annual dividend of $0.20 per share and has a dividend yield of 4.0%. Brookfield Infrastructure pays an annual dividend of $1.53 per share and has a dividend yield of 3.3%. Snam pays out 61.1% of its earnings in the form of a dividend. Brookfield Infrastructure pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Infrastructure has raised its dividend for 1 consecutive years. Snam is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Snam and Brookfield Infrastructure’s revenue, earnings per share and valuation.

Brookfield Infrastructure has higher revenue and earnings than Snam. Snam is trading at a lower price-to-earnings ratio than Brookfield Infrastructure, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Snam and Brookfield Infrastructure’s net margins, return on equity and return on assets.

Institutional and Insider Ownership

22.6% of Snam shares are owned by institutional investors. Comparatively, 70.7% of Brookfield Infrastructure shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Brookfield Infrastructure beats Snam on 6 of the 10 factors compared between the two stocks.

About Snam

(Get Free Report)

Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure in Italy. The company operates through Transportation, Storage, Regasification, Energy Transition, and other segments. It provides natural gas transportation and dispatching services; and owns and manages 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 in Lombardy, Emilia-Romagna, and in Abruzzo. In addition, it engages in the rental and maintenance of fibre optic telecommunications cables, as well as energy efficiency solutions for residential, industrial, tertiary, and public administration sectors; and management of biogas and biomethane plants. Further, the company offers engineering and project management services. It also operates in Albania, Saudi Arabia, Austria, China, Egypt, the United Arab Emirates, France, Greece, the United Kingdom, and the United States. 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.

About Brookfield Infrastructure

(Get Free Report)

Brookfield Infrastructure Corporation, together with its subsidiaries, owns and operates regulated natural gas transmission systems in Brazil. The company also engages in the regulated gas and electricity distribution operations in the United Kingdom; and electricity transmission and distribution, as well as gas distribution in Australia. It operates approximately 2,000 kilometers of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; 4.3 million gas and electricity connections; and 60,000 kilometers of operational electricity transmission and distribution lines in Australia. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Infrastructure Corporation is a subsidiary of Brookfield Infrastructure Partners L.P.

Receive News & Ratings for Snam Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Snam and related companies with MarketBeat.com's FREE daily email newsletter.