Northwest Natural Gas Company (NWN) vs RGC Resources Inc. (RGCO)

Northwest Natural Gas Company and RGC Resources Inc. are both Utilities Regulated Gas companies. Northwest Natural Gas Company is the larger, with a market value of $2.0B against $216.5M — 9.2× the size. RGC Resources Inc. trades at the lower P/E: 15.6× against 15.7×. RGC Resources Inc. grew revenue faster over the last twelve months: 13.8% against 4.41%. RGC Resources Inc. has the higher net margin (13.1% vs 9.75%) and the lower return on invested capital (4.29% vs 4.44%). Both pay a dividend; Northwest Natural Gas Company yields more (5.49% vs 4.23%). Across the 21 metrics below, RGC Resources Inc. leads on 11 and Northwest Natural Gas Company on 10.

Valuation

Metric NWN RGCO Utilities Regulated Gas median
P/E 15.66 15.65 15.65
P/S 1.53 2.04 2.04
P/B 1.27 1.78 1.50
Price to free cash flow n/m 104.65 —
EV/EBITDA 9.32 11.95 11.49
EV/Sales 3.54 3.41 3.54
Earnings yield 6.39% 6.39% 6.39%
Free cash flow yield (13.44%) 0.96% (5.71%)

Profitability

Metric NWN RGCO Utilities Regulated Gas median
Gross margin 70.76% 51.39% 63.14%
Operating margin 22.85% 17.29% 21.47%
Net margin 9.75% 13.05% 13.00%
Free cash flow margin (20.57%) 1.95% (13.27%)
Return on equity 8.35% 11.69% 9.47%
Return on assets 2.06% 4.21% 3.80%
Return on invested capital 4.44% 4.29% 4.29%

Growth

Metric NWN RGCO Utilities Regulated Gas median
Revenue growth (TTM) 4.41% 13.83% 6.36%
EPS growth (last fiscal year) 36.45% 11.21% —
Revenue growth, 5-year CAGR 10.75% 8.61% 6.36%
Net income growth, 5-year CAGR 8.10% 4.68% 8.10%

Health

Metric NWN RGCO Utilities Regulated Gas median
Debt to equity 1.68 1.22 1.22
Current ratio 0.77 0.94 0.78
Net debt to EBITDA 5.46 4.95 4.68

Dividend

Metric NWN RGCO Utilities Regulated Gas median
Dividend yield 5.49% 4.23% 4.31%
Payout ratio 0.69 0.69 0.62

Size

Metric NWN RGCO Utilities Regulated Gas median
Market cap 1.99b 216.52m 4.52b

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