Corning Natural Gas (CNIG) and RGC Resources (RGCO) Head to Head Comparison

Corning Natural Gas (OTCMKTS:CNIG) and RGC Resources (NASDAQ:RGCO) are both small-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Valuation & Earnings

This table compares Corning Natural Gas and RGC Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Corning Natural Gas $30.04 million 1.87 $2.10 million N/A N/A
RGC Resources $65.54 million 3.30 $7.30 million $0.95 28.42

RGC Resources has higher revenue and earnings than Corning Natural Gas.

Volatility & Risk

Corning Natural Gas has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, RGC Resources has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Corning Natural Gas and RGC Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corning Natural Gas 0 0 0 0 N/A
RGC Resources 0 2 0 0 2.00

RGC Resources has a consensus price target of $27.00, suggesting a potential upside of 0.00%. Given RGC Resources’ higher possible upside, analysts plainly believe RGC Resources is more favorable than Corning Natural Gas.

Profitability

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

Net Margins Return on Equity Return on Assets
Corning Natural Gas 7.18% 8.15% 2.49%
RGC Resources 11.14% 9.40% 3.42%

Dividends

Corning Natural Gas pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. RGC Resources pays an annual dividend of $0.62 per share and has a dividend yield of 2.3%. RGC Resources pays out 65.3% of its earnings in the form of a dividend. RGC Resources has increased its dividend for 5 consecutive years.

Insider & Institutional Ownership

4.3% of Corning Natural Gas shares are held by institutional investors. 30.5% of Corning Natural Gas shares are held by company insiders. Comparatively, 8.9% of RGC Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

RGC Resources beats Corning Natural Gas on 8 of the 13 factors compared between the two stocks.

About Corning Natural Gas

Corning Natural Gas Holding Corporation, through its subsidiaries, distributes natural gas and electricity. The company offers natural gas to approximately 15,000 customers through approximately 425 miles of distribution main and 86 regulating stations; and electricity to approximately 4,600 customers through approximately 160 miles of electric distribution wire and poles, and 21 miles of gas distribution pipe. It also transports and compresses gas for a gas producer from its gathering network into an interstate pipeline. The company serves residential, commercial, industrial, and municipal customers in the Corning, Hammondsport, and Virgil areas, as well as in Pike county; and distributes to two other gas utilities that serve the Elmira and Bath areas of New York. Corning Natural Gas Holding Corporation was founded in 1904 and is headquartered in Corning, New York.

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.

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