Critical Comparison: RGC Resources (NASDAQ:RGCO) & Centuri (NYSE:CTRI)

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

Earnings & Valuation

This table compares RGC Resources and Centuri”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RGC Resources	$97.44 million	2.21	$11.30 million	$1.30	16.18
Centuri	$2.64 billion	0.53	-$186.18 million	N/A	N/A

RGC Resources has higher earnings, but lower revenue than Centuri.

Institutional & Insider Ownership

35.8% of RGC Resources shares are held by institutional investors. 6.0% of RGC Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for RGC Resources and Centuri, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RGC Resources	0	0	0	0	N/A
Centuri	1	3	2	2	2.63

Centuri has a consensus price target of $20.60, suggesting a potential upside of 29.32%. Given Centuri’s higher probable upside, analysts clearly believe Centuri is more favorable than RGC Resources.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RGC Resources	15.04%	11.93%	4.06%
Centuri	N/A	N/A	N/A

Summary

RGC Resources beats Centuri on 7 of the 11 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 Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.