RGC Resources (NASDAQ: RGCO) is one of 14 public companies in the “Natural Gas Distribution” industry, but how does it weigh in compared to its rivals? We will compare RGC Resources to similar companies based on the strength of its earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.
Valuation and Earnings
This table compares RGC Resources and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|RGC Resources||$62.30 million||$6.23 million||28.28|
|RGC Resources Competitors||$2.09 billion||$171.32 million||19.27|
RGC Resources pays an annual dividend of $0.62 per share and has a dividend yield of 2.6%. 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 rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Volatility and Risk
RGC Resources has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, RGC Resources’ rivals have a beta of 0.38, suggesting that their average stock price is 62% less volatile than the S&P 500.
Insider and Institutional Ownership
65.6% 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares RGC Resources and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RGC Resources Competitors||4.79%||-12.04%||3.92%|
This is a breakdown of recent ratings and price targets for RGC Resources and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RGC Resources Competitors||65||224||244||5||2.35|
RGC Resources presently has a consensus price target of $27.00, indicating a potential upside of 15.04%. As a group, “Natural Gas Distribution” companies have a potential upside of 15.42%. Given RGC Resources’ rivals higher possible upside, analysts plainly believe RGC Resources has less favorable growth aspects than its rivals.
RGC Resources rivals beat RGC Resources on 9 of the 15 factors compared.
RGC Resources Company Profile
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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