RGC Resources (NASDAQ:RGCO) vs. Amerilithium (OTCMKTS:PTTN) Critical Review

RGC Resources (NASDAQ:RGCO) and Amerilithium (OTCMKTS:PTTN) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Valuation & Earnings

This table compares RGC Resources and Amerilithium”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RGC Resources	$95.33 million	2.40	$13.28 million	$1.28	17.23
Amerilithium	N/A	N/A	N/A	N/A	N/A

RGC Resources has higher revenue and earnings than Amerilithium.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RGC Resources and Amerilithium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RGC Resources	0	1	0	0	2.00
Amerilithium	0	0	0	0	0.00

Given Amerilithium’s higher possible upside, analysts clearly believe Amerilithium is more favorable than RGC Resources.

Institutional and Insider Ownership

35.8% of RGC Resources shares are owned by institutional investors. 6.6% of RGC Resources shares are owned by insiders. Comparatively, 2.5% of Amerilithium shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

RGC Resources has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Amerilithium has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares RGC Resources and Amerilithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RGC Resources	13.93%	11.56%	4.04%
Amerilithium	N/A	N/A	N/A

Summary

RGC Resources beats Amerilithium on 7 of the 8 factors compared between the two stocks.

About RGC Resources

RGC Resources, Inc., through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. The company also provides various unregulated services. It operates approximately 1,179 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates six metering stations. In addition, it produces biogas. RGC Resources, Inc. was founded in 1883 and is based in Roanoke, Virginia.

About Amerilithium

Patten Energy Solutions Group, Inc., an exploration stage company, engages in the acquisition, exploration, development, mining, and production of energy and mineral properties. The company primarily explores for lithium carbonate and other minerals. It holds interests in a portfolio of properties covering approximately 31,020 acres located in the United States and Australia. Patten Energy Solutions Group, Inc. was founded in 2004 and is based in Dolton, Illinois.