Reviewing Delta Natural Gas (DGAS) and RGC Resources (RGCO)

RGC Resources (NASDAQ: RGCO) and Delta Natural Gas (NASDAQ:DGAS) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

How to Become a New Pot Stock Millionaire

This table compares RGC Resources and Delta Natural Gas’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RGC Resources $62.30 million 3.25 $6.23 million $0.83 30.60
Delta Natural Gas N/A N/A N/A $0.77 39.86

RGC Resources has higher revenue and earnings than Delta Natural Gas. RGC Resources is trading at a lower price-to-earnings ratio than Delta Natural Gas, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

36.8% of Delta Natural Gas shares are held by institutional investors. 8.9% of RGC Resources shares are held by company insiders. Comparatively, 4.2% of Delta Natural Gas shares are held by company 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.

Profitability

This table compares RGC Resources and Delta Natural Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RGC Resources 9.73% 9.64% 3.16%
Delta Natural Gas -3.88% -2.51% -1.03%

Analyst Ratings

This is a summary of recent ratings and recommmendations for RGC Resources and Delta Natural Gas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RGC Resources 0 0 1 0 3.00
Delta Natural Gas 0 0 0 0 N/A

RGC Resources currently has a consensus price target of $27.00, suggesting a potential upside of 6.30%. Given RGC Resources’ higher probable upside, analysts clearly believe RGC Resources is more favorable than Delta Natural Gas.

Dividends

RGC Resources pays an annual dividend of $0.62 per share and has a dividend yield of 2.4%. Delta Natural Gas pays an annual dividend of $0.75 per share and has a dividend yield of 2.4%. RGC Resources pays out 74.7% of its earnings in the form of a dividend. Delta Natural Gas pays out 97.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

RGC Resources beats Delta Natural Gas on 9 of the 12 factors compared between the two stocks.

About RGC Resources

RGC Resources, Inc., through its subsidiaries, operates as an energy services company. The company sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. It also provides various unregulated services. The company operates approximately 1,135 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility located in Botetourt County, as well as owns and operates 8 metering stations. RGC Resources, Inc. was founded in 1912 and is based in Roanoke, Virginia.

About Delta Natural Gas

Delta Natural Gas Company, Inc. distributes or transports natural gas to approximately 36,000 customers. The Company’s segments include regulated segment and non-regulated segment. Through regulated segment, the Company distributes natural gas to its retail customers in approximately 23 rural counties. Its three service areas are Nicholasville, Corbin and Berea, Kentucky. The non-regulated segment includes the Company’s three subsidiaries, Delta Resources, Inc. and Delgasco, Inc. (Delgasco), which purchase natural gas in the open market, including natural gas from Kentucky producers, and Enpro, Inc. (Enpro), which produces natural gas that is sold to Delgasco for resale in the open market. The Company owns approximately 2,600 miles of natural gas gathering, transmission, distribution and storage lines. These lines range in size over 12 inches in diameter. It also holds leases for the storage of natural gas under approximately 8,000 acres located in Bell County, Kentucky.

Receive News & Ratings for RGC Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RGC Resources and related companies with MarketBeat.com's FREE daily email newsletter.

 


Latest News

Didi Gregorius Starts Season Hot at the Plate
Didi Gregorius Starts Season Hot at the Plate
Andujar, Stanton and Torres Shine in Yankees Rout
Andujar, Stanton and Torres Shine in Yankees Rout
Almora Jr. and Baez Could Become Cubs new One-Two Tandem
Almora Jr. and Baez Could Become Cubs new One-Two Tandem
Red Sox Tie Record for Best Start After 17 Games
Red Sox Tie Record for Best Start After 17 Games
Bryce Harper Hits 406-Foot Home Run While Breaking His Bat
Bryce Harper Hits 406-Foot Home Run While Breaking His Bat
Rick Porcello’s Strong Start Gives Boost to Red Sox
Rick Porcello’s Strong Start Gives Boost to Red Sox


Leave a Reply

 
© 2006-2018 BBNS.