Comparing MDU Resources Group (NYSE:MDU) and Chesapeake Utilities (NYSE:CPK)

MDU Resources Group (NYSE:MDU) and Chesapeake Utilities (NYSE:CPK) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares MDU Resources Group and Chesapeake Utilities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDU Resources Group	8.25%	8.29%	3.20%
Chesapeake Utilities	14.89%	9.20%	3.62%

Analyst Recommendations

This is a summary of recent ratings and target prices for MDU Resources Group and Chesapeake Utilities, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDU Resources Group	0	1	2	0	2.67
Chesapeake Utilities	0	2	0	1	2.67

MDU Resources Group currently has a consensus target price of $18.00, suggesting a potential upside of 9.26%. Chesapeake Utilities has a consensus target price of $124.50, suggesting a potential upside of 0.48%. Given MDU Resources Group’s higher possible upside, analysts clearly believe MDU Resources Group is more favorable than Chesapeake Utilities.

Earnings & Valuation

This table compares MDU Resources Group and Chesapeake Utilities”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDU Resources Group	$1.76 billion	1.91	$281.11 million	$1.06	15.54
Chesapeake Utilities	$787.20 million	3.71	$118.60 million	$5.61	22.09

MDU Resources Group has higher revenue and earnings than Chesapeake Utilities. MDU Resources Group is trading at a lower price-to-earnings ratio than Chesapeake Utilities, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

71.4% of MDU Resources Group shares are held by institutional investors. Comparatively, 83.1% of Chesapeake Utilities shares are held by institutional investors. 0.9% of MDU Resources Group shares are held by company insiders. Comparatively, 1.5% of Chesapeake Utilities shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

MDU Resources Group has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Chesapeake Utilities has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Dividends

MDU Resources Group pays an annual dividend of $0.52 per share and has a dividend yield of 3.2%. Chesapeake Utilities pays an annual dividend of $2.74 per share and has a dividend yield of 2.2%. MDU Resources Group pays out 49.1% of its earnings in the form of a dividend. Chesapeake Utilities pays out 48.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MDU Resources Group has increased its dividend for 1 consecutive years and Chesapeake Utilities has increased its dividend for 22 consecutive years.

Summary

Chesapeake Utilities beats MDU Resources Group on 11 of the 17 factors compared between the two stocks.

About MDU Resources Group

MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. It operates through four segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming; and operates 3,400 miles of transmission lines, 4,800 miles of distribution lines, and 82 transmission and 298 distribution substations. The Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and supplies related value-added services. The Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. The Construction Services segment offers electrical and mechanical contracting services, including the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping, and services; transmission and distribution contracting services, comprise construction and maintenance of overhead and underground electrical, and gas and communication infrastructure; and manufactures and supplies transmission and distribution lines construction equipment and tools. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. MDU Resources Group, Inc. was incorporated in 1924 and is headquartered in Bismarck, North Dakota.

About Chesapeake Utilities

Chesapeake Utilities Corporation operates as an energy delivery company. The company operates through two segments, Regulated Energy and Unregulated Energy. The Regulated Energy segment natural gas distribution operations in central and southern Delaware, Maryland's eastern shore, and Florida; regulated natural gas transmission in the Delmarva Peninsula, Ohio, and Florida; and regulated electric distribution in northeast and northwest Florida. The Unregulated Energy segment engages in the propane operations in the Mid-Atlantic region, North Carolina, South Carolina, and Florida; unregulated natural gas transmission/supply operation in central and eastern Ohio; generation of electricity and steam; provision of compressed natural gas, liquefied natural gas, and renewable natural gas transportation and pipeline solutions primarily to utilities and pipelines in the United States; and sustainable energy investments. This segment is also involved in the provision of other unregulated services, such as energy-related merchandise sale and heating, ventilation and air conditioning, and plumbing and electrical services. Chesapeake Utilities Corporation was founded in 1859 and is headquartered in Dover, Delaware.