OPAL Fuels Inc. (OPAL) vs RGC Resources Inc. (RGCO)

OPAL Fuels Inc. and RGC Resources Inc. are both Utilities Regulated Gas companies. OPAL Fuels Inc. is the larger, with a market value of $321.4M against $216.5M — 1.5× the size. OPAL Fuels Inc. has negative trailing earnings, so its P/E is not meaningful; RGC Resources Inc. trades at 15.6×. RGC Resources Inc. grew revenue faster over the last twelve months: 13.8% against 3.02%. RGC Resources Inc. has the higher net margin (13.1% vs −0.13%) and the higher return on invested capital (4.29% vs 0.39%). Across the 18 metrics below, RGC Resources Inc. leads on 13 and OPAL Fuels Inc. on 5.

Valuation

Metric OPAL RGCO Utilities Regulated Gas median
P/E n/m 15.65 15.65
P/S 0.16 2.04 2.04
P/B 1.45 1.78 1.50
Price to free cash flow n/m 104.65 —
EV/EBITDA 14.56 11.95 11.49
EV/Sales 1.16 3.41 3.54
Earnings yield (0.54%) 6.39% 6.39%
Free cash flow yield (87.42%) 0.96% (5.71%)

Profitability

Metric OPAL RGCO Utilities Regulated Gas median
Gross margin 29.42% 51.39% 63.14%
Operating margin 0.69% 17.29% 21.47%
Net margin (0.13%) 13.05% 13.00%
Free cash flow margin (14.10%) 1.95% (13.27%)
Return on equity (5.45%) 11.69% 9.47%
Return on assets (0.04%) 4.21% 3.80%
Return on invested capital 0.39% 4.29% 4.29%

Growth

Metric OPAL RGCO Utilities Regulated Gas median
Revenue growth (TTM) 3.02% 13.83% 6.36%
EPS growth (last fiscal year) 650.00% 11.21% —
Revenue growth, 5-year CAGR — 8.61% 6.36%
Net income growth, 5-year CAGR — 4.68% 8.10%

Health

Metric OPAL RGCO Utilities Regulated Gas median
Debt to equity 11.39 1.22 1.22
Current ratio 1.82 0.94 0.78
Net debt to EBITDA 10.02 4.95 4.68

Dividend

Metric OPAL RGCO Utilities Regulated Gas median
Dividend yield — 4.23% 4.31%
Payout ratio 0.00 0.69 0.62

Size

Metric OPAL RGCO Utilities Regulated Gas median
Market cap 321.43m 216.52m 4.52b

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