ATO vs. BIP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ATO and BIP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ATO’s market capitalization of 24.19 billion USD is substantially larger than BIP’s 15.72 billion USD, indicating a significant difference in their market valuations.
BIP carries a higher beta at 1.06, indicating it’s more sensitive to market moves, while ATO (beta: 0.70) exhibits greater stability.
| Symbol | ATO | BIP |
|---|---|---|
| Company Name | Atmos Energy Corporation | Brookfield Infrastructure Partners L.P. |
| Country | US | BM |
| Sector | Utilities | Utilities |
| Industry | Regulated Gas | Diversified Utilities |
| CEO | John Kevin Akers | Samuel J. B. Pollock CPA |
| Price | 152.28 USD | 34.07 USD |
| Market Cap | 24.19 billion USD | 15.72 billion USD |
| Beta | 0.70 | 1.06 |
| Exchange | NYSE | NYSE |
| IPO Date | December 28, 1983 | January 10, 2008 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ATO and BIP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ATO
9.05%
Regulated Gas Industry
- Max
- 11.45%
- Q3
- 11.45%
- Median
- 9.01%
- Q1
- 7.53%
- Min
- 6.41%
ATO’s Return on Equity of 9.05% is on par with the norm for the Regulated Gas industry, indicating its profitability relative to shareholder equity is typical for the sector.
BIP
1.90%
Diversified Utilities Industry
- Max
- 17.95%
- Q3
- 11.52%
- Median
- 9.21%
- Q1
- 6.89%
- Min
- 1.90%
BIP’s Return on Equity of 1.90% is in the lower quartile for the Diversified Utilities industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Return on Invested Capital
ATO
4.73%
Regulated Gas Industry
- Max
- 8.99%
- Q3
- 5.97%
- Median
- 4.43%
- Q1
- 0.25%
- Min
- 0.00%
ATO’s Return on Invested Capital of 4.73% is in line with the norm for the Regulated Gas industry, reflecting a standard level of efficiency in generating profits from its capital base.
BIP
4.05%
Diversified Utilities Industry
- Max
- 5.93%
- Q3
- 5.01%
- Median
- 4.05%
- Q1
- 3.29%
- Min
- 2.36%
BIP’s Return on Invested Capital of 4.05% is in line with the norm for the Diversified Utilities industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
ATO
25.35%
Regulated Gas Industry
- Max
- 25.35%
- Q3
- 14.67%
- Median
- 8.48%
- Q1
- 4.66%
- Min
- -6.69%
A Net Profit Margin of 25.35% places ATO in the upper quartile for the Regulated Gas industry, signifying strong profitability and more effective cost management than most of its peers.
BIP
0.50%
Diversified Utilities Industry
- Max
- 22.37%
- Q3
- 17.08%
- Median
- 12.67%
- Q1
- 9.69%
- Min
- 0.50%
Falling into the lower quartile for the Diversified Utilities industry, BIP’s Net Profit Margin of 0.50% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin
ATO
33.30%
Regulated Gas Industry
- Max
- 45.15%
- Q3
- 28.16%
- Median
- 19.42%
- Q1
- 14.26%
- Min
- 3.90%
An Operating Profit Margin of 33.30% places ATO in the upper quartile for the Regulated Gas industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
BIP
24.06%
Diversified Utilities Industry
- Max
- 27.96%
- Q3
- 22.82%
- Median
- 19.04%
- Q1
- 13.03%
- Min
- 7.89%
An Operating Profit Margin of 24.06% places BIP in the upper quartile for the Diversified Utilities industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ATO | BIP |
|---|---|---|
| Return on Equity (TTM) | 9.05% | 1.90% |
| Return on Assets (TTM) | 4.21% | 0.10% |
| Return on Invested Capital (TTM) | 4.73% | 4.05% |
| Net Profit Margin (TTM) | 25.35% | 0.50% |
| Operating Profit Margin (TTM) | 33.30% | 24.06% |
| Gross Profit Margin (TTM) | 54.44% | 25.97% |
Financial Strength
Current Ratio
ATO
1.33
Regulated Gas Industry
- Max
- 1.57
- Q3
- 1.15
- Median
- 1.00
- Q1
- 0.69
- Min
- 0.38
ATO’s Current Ratio of 1.33 is in the upper quartile for the Regulated Gas industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
BIP
0.77
Diversified Utilities Industry
- Max
- 2.07
- Q3
- 1.38
- Median
- 1.19
- Q1
- 0.81
- Min
- 0.57
BIP’s Current Ratio of 0.77 falls into the lower quartile for the Diversified Utilities industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ATO
0.65
Regulated Gas Industry
- Max
- 1.67
- Q3
- 1.53
- Median
- 1.38
- Q1
- 0.83
- Min
- 0.02
Falling into the lower quartile for the Regulated Gas industry, ATO’s Debt-to-Equity Ratio of 0.65 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
BIP
10.14
Diversified Utilities Industry
- Max
- 1.54
- Q3
- 1.19
- Median
- 0.73
- Q1
- 0.63
- Min
- 0.23
With a Debt-to-Equity Ratio of 10.14, BIP operates with exceptionally high leverage compared to the Diversified Utilities industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
ATO
8.02
Regulated Gas Industry
- Max
- 4.65
- Q3
- 3.07
- Median
- 2.65
- Q1
- 1.77
- Min
- 1.22
With an Interest Coverage Ratio of 8.02, ATO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Regulated Gas industry. This stems from either robust earnings or a conservative debt load.
BIP
1.46
Diversified Utilities Industry
- Max
- 6.39
- Q3
- 3.88
- Median
- 2.56
- Q1
- 1.73
- Min
- 1.25
In the lower quartile for the Diversified Utilities industry, BIP’s Interest Coverage Ratio of 1.46 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | ATO | BIP |
|---|---|---|
| Current Ratio (TTM) | 1.33 | 0.77 |
| Quick Ratio (TTM) | 1.25 | 0.73 |
| Debt-to-Equity Ratio (TTM) | 0.65 | 10.14 |
| Debt-to-Asset Ratio (TTM) | 0.32 | 0.54 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.49 | 6.13 |
| Interest Coverage Ratio (TTM) | 8.02 | 1.46 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ATO and BIP. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ATO
2.24%
Regulated Gas Industry
- Max
- 6.99%
- Q3
- 4.15%
- Median
- 4.00%
- Q1
- 2.73%
- Min
- 0.00%
ATO’s Dividend Yield of 2.24% is in the lower quartile for the Regulated Gas industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
BIP
4.90%
Diversified Utilities Industry
- Max
- 18.26%
- Q3
- 5.83%
- Median
- 4.74%
- Q1
- 2.93%
- Min
- 0.00%
BIP’s Dividend Yield of 4.90% is consistent with its peers in the Diversified Utilities industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
ATO
46.20%
Regulated Gas Industry
- Max
- 87.89%
- Q3
- 74.00%
- Median
- 60.41%
- Q1
- 45.73%
- Min
- 0.00%
ATO’s Dividend Payout Ratio of 46.20% is within the typical range for the Regulated Gas industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
BIP
1,699.07%
Diversified Utilities Industry
- Max
- 89.06%
- Q3
- 77.28%
- Median
- 56.48%
- Q1
- 42.75%
- Min
- 0.00%
BIP’s Dividend Payout Ratio of 1,699.07% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | ATO | BIP |
|---|---|---|
| Dividend Yield (TTM) | 2.24% | 4.90% |
| Dividend Payout Ratio (TTM) | 46.20% | 1699.07% |
Valuation
Price-to-Earnings Ratio
ATO
21.32
Regulated Gas Industry
- Max
- 23.74
- Q3
- 22.05
- Median
- 16.86
- Q1
- 15.06
- Min
- 10.79
ATO’s P/E Ratio of 21.32 is within the middle range for the Regulated Gas industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
BIP
146.98
Diversified Utilities Industry
- Max
- 25.08
- Q3
- 19.50
- Median
- 15.21
- Q1
- 11.42
- Min
- 2.74
At 146.98, BIP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Diversified Utilities industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ATO
3.14
Regulated Gas Industry
- Max
- 3.70
- Q3
- 3.36
- Median
- 3.17
- Q1
- 2.55
- Min
- 2.21
ATO’s Forward PEG Ratio of 3.14 is within the middle range of its peers in the Regulated Gas industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
BIP
-1.47
Diversified Utilities Industry
- Max
- 3.39
- Q3
- 2.59
- Median
- 2.31
- Q1
- 1.97
- Min
- 1.69
BIP has a negative Forward PEG Ratio of -1.47. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
Price-to-Sales Ratio
ATO
5.39
Regulated Gas Industry
- Max
- 3.36
- Q3
- 2.16
- Median
- 1.35
- Q1
- 1.06
- Min
- 0.32
With a P/S Ratio of 5.39, ATO trades at a valuation that eclipses even the highest in the Regulated Gas industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
BIP
0.74
Diversified Utilities Industry
- Max
- 3.68
- Q3
- 2.25
- Median
- 1.75
- Q1
- 0.80
- Min
- 0.47
In the lower quartile for the Diversified Utilities industry, BIP’s P/S Ratio of 0.74 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
ATO
1.84
Regulated Gas Industry
- Max
- 2.11
- Q3
- 1.88
- Median
- 1.55
- Q1
- 1.24
- Min
- 1.10
ATO’s P/B Ratio of 1.84 is within the conventional range for the Regulated Gas industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
BIP
2.86
Diversified Utilities Industry
- Max
- 2.56
- Q3
- 1.75
- Median
- 1.29
- Q1
- 1.12
- Min
- 0.31
At 2.86, BIP’s P/B Ratio is at an extreme premium to the Diversified Utilities industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ATO | BIP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 21.32 | 146.98 |
| Forward PEG Ratio (TTM) | 3.14 | -1.47 |
| Price-to-Sales Ratio (P/S, TTM) | 5.39 | 0.74 |
| Price-to-Book Ratio (P/B, TTM) | 1.84 | 2.86 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -18.53 | 20.39 |
| EV-to-EBITDA (TTM) | 14.09 | 7.90 |
| EV-to-Sales (TTM) | 7.17 | 3.30 |