NewJersey Resources Corporation (NJR) vs RGC Resources Inc. (RGCO)

NewJersey Resources Corporation and RGC Resources Inc. are both Utilities Regulated Gas companies. NewJersey Resources Corporation is the larger, with a market value of $5.6B against $241.1M — 23.0× the size. NewJersey Resources Corporation trades at the lower P/E: 15.0× against 17.4×. RGC Resources Inc. grew revenue faster over the last twelve months: 13.8% against 6.36%. NewJersey Resources Corporation has the higher net margin (16.4% vs 13.1%) and the higher return on invested capital (5.47% vs 4.29%). Both pay a dividend; RGC Resources Inc. yields more (3.69% vs 3.52%). Across the 22 metrics below, NewJersey Resources Corporation leads on 11 and RGC Resources Inc. on 11.

Valuation

Metric NJR RGCO Utilities Regulated Gas median
P/E 15.02 17.35 18.45
P/S 2.48 2.26 2.24
P/B 2.09 1.97 1.60
Price to free cash flow n/m 116.06 —
EV/EBITDA 12.19 12.73 12.21
EV/Sales 4.13 3.64 3.95
Earnings yield 6.66% 5.76% 5.44%
Free cash flow yield (2.82%) 0.86% (4.57%)

Profitability

Metric NJR RGCO Utilities Regulated Gas median
Gross margin 57.23% 51.39% 63.29%
Operating margin 24.78% 17.29% 22.80%
Net margin 16.42% 13.05% 13.27%
Free cash flow margin (7.00%) 1.95% (11.13%)
Return on equity 14.45% 11.69% 9.10%
Return on assets 4.79% 4.21% 3.58%
Return on invested capital 5.47% 4.29% 4.40%

Growth

Metric NJR RGCO Utilities Regulated Gas median
Revenue growth (TTM) 6.36% 13.83% 3.64%
EPS growth (last fiscal year) 14.04% 11.21% 13.77%
Revenue growth, 5-year CAGR 0.83% 8.61% 6.36%
Net income growth, 5-year CAGR 15.54% 4.68% 8.10%

Health

Metric NJR RGCO Utilities Regulated Gas median
Debt to equity 1.40 1.22 1.15
Current ratio 0.66 0.94 0.80
Net debt to EBITDA 5.17 4.95 4.57

Dividend

Metric NJR RGCO Utilities Regulated Gas median
Dividend yield 3.52% 3.69% 3.32%
Payout ratio 0.53 0.65 0.59

Size

Metric NJR RGCO Utilities Regulated Gas median
Market cap 5.55b 241.11m 5.26b

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