RGC Resources (NASDAQ: RGCO) is one of 14 publicly-traded companies in the “Natural Gas Distribution” industry, but how does it compare to its competitors? We will compare RGC Resources to related companies based on the strength of its dividends, analyst recommendations, earnings, risk, profitability, institutional ownership and valuation.
Volatility and Risk
RGC Resources has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, RGC Resources’ competitors have a beta of 0.38, indicating that their average stock price is 62% less volatile than the S&P 500.
65.9% of shares of all “Natural Gas Distribution” companies are held by institutional investors. 8.9% of RGC Resources shares are held by insiders. Comparatively, 2.2% of shares of all “Natural Gas Distribution” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares RGC Resources and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|RGC Resources||$62.30 million||$6.23 million||27.96|
|RGC Resources Competitors||$2.09 billion||$171.32 million||19.22|
RGC Resources’ competitors have higher revenue and earnings than RGC Resources. RGC Resources is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
RGC Resources pays an annual dividend of $0.62 per share and has a dividend yield of 2.7%. RGC Resources pays out 74.7% of its earnings in the form of a dividend. As a group, “Natural Gas Distribution” companies pay a dividend yield of 2.7% and pay out 59.0% of their earnings in the form of a dividend. RGC Resources lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
This is a summary of recent ratings and recommmendations for RGC Resources and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RGC Resources Competitors||65||224||243||5||2.35|
RGC Resources presently has a consensus price target of $27.00, suggesting a potential upside of 16.33%. As a group, “Natural Gas Distribution” companies have a potential upside of 15.05%. Given RGC Resources’ stronger consensus rating and higher probable upside, analysts clearly believe RGC Resources is more favorable than its competitors.
This table compares RGC Resources and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RGC Resources Competitors||4.79%||-9.64%||3.99%|
RGC Resources competitors beat RGC Resources on 8 of the 15 factors compared.
About RGC Resources
RGC Resources, Inc. (Resources) is an energy services company. The Company is engaged in the regulated sale and distribution of natural gas to residential, commercial and industrial customers in Roanoke, Virginia, and the surrounding localities, through its Roanoke Gas Company (Roanoke Gas) subsidiary. Roanoke Gas also provides certain non-regulated services. It maintains an integrated natural gas distribution system to deliver natural gas purchased from suppliers to residential, commercial and industrial users in its service territory. As of September 30, 2016, Resources had approximately 1,132 miles of transmission and distribution pipeline. As of September 30, 2016, Roanoke Gas owned and operated eight metering stations. It also owns a liquefied natural gas storage facility located in Botetourt County that has the capacity to store up to 220,000 dekatherm (DTH) of natural gas. The Company’s subsidiaries also include Diversified Energy Company and RGC Midstream, LLC.
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