Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, China Natural Gas (NASDAQ:CHNG) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at China Natural Gas' business and see what CAPS investors are saying about the stock right now.

China Natural Gas facts

Headquarters (Founded)

Xian, China (1999)

Market Cap

$210.4 million


Gas utilities

Trailing-12-Month Revenue

$76.1 million


Founder/CEO Qinan Ji

CFO Jing Chen

Return on Equity (Average, Past 3 Years)



$9.7 million/$25.8 million

Other Highly Rated Natural Gas Stocks

Chesapeake Energy (NYSE:CHK)

Anadarko Petroleum (NYSE:APC)

Devon Energy (NYSE:DVN)

CAPS Members Bullish on CHNG Also Bullish on


CAPS Members Bearish on CHNG Also Bearish on

Citigroup (NYSE:C)

Wells Fargo (NYSE:WFC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 1,310 members who have rated China Natural Gas believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Ayax2006, who is ranked in the top 1% of our community, and jpzc.

Just last month, Ayax2006 tapped the stock as a particularly natural selection: "Name says it all, plus attractive growth rate and valuation."

In a pitch from one week later, jpzc expands on that gassy feeling. Here's an excerpt:

Their stable growth path, conservative balance sheet, consistent earnings and revenue growth, and sound development plan which is laid out in the offering prospectus … made me a believer.

Given China's need for clean energy, and their desire to move away from petroleum as much as possible, plus [China Natural Gas'] very well thought out growth plan and conservative financial profile, it appeared to me to be a big potential play.

Growth stocks make money by growing their earnings, and due to the expansion or contraction of the stocks valuation relative to those earnings. … If they continue to grow at north of 30% per year, due to China's enormous need for natural gas based transportation and energy, this stock could well be a ten bagger in five years.

What do you think about China Natural Gas, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake is a Motley Fool Inside Value pick, and Apple is a selection of Stock Advisor. The Fool owns shares of Chesapeake. The Fool's disclosure policy always gets a perfect score.