Financial Review: RGC Resources (NASDAQ:RGCO) and Italgas (OTCMKTS:ITGGF)

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Italgas and RGC Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Italgas	0	1	3	0	2.75
RGC Resources	0	0	1	0	3.00

Insider and Institutional Ownership

35.8% of RGC Resources shares are owned by institutional investors. 7.2% of RGC Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Italgas	N/A	N/A	N/A
RGC Resources	13.05%	11.73%	4.15%

Valuation and Earnings

This table compares Italgas and RGC Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Italgas	N/A	N/A	N/A	N/A	N/A
RGC Resources	$107.14 million	2.11	$13.28 million	$1.34	16.16

RGC Resources has higher revenue and earnings than Italgas.

Summary

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

About Italgas

Italgas S.p.A., together with its subsidiaries, engages in the distribution of natural gas in Italy. It is involved in the transportation of gas to households, enterprises, etc. The company operated a distribution network of 81,309 kilometers. It also engages in metering activities; and distributes and sells water. Italgas S.p.A. was founded in 1837 and is based in Milan, Italy.

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.