RGC Resources Inc. (RGCO) vs Spire Inc. (SR)

RGC Resources Inc. and Spire Inc. are both Utilities Regulated Gas companies. Spire Inc. is the larger, with a market value of $4.8B against $238.4M — 20.0× the size. Spire Inc. trades at the lower P/E: 9.1× against 16.6×. Spire Inc. grew revenue faster over the last twelve months: 17.0% against 13.8%. Spire Inc. has the higher net margin (19.8% vs 13.1%) and the lower return on invested capital (3.76% vs 4.29%). Both pay a dividend; RGC Resources Inc. yields more (4.76% vs 4.02%). Across the 22 metrics below, Spire Inc. leads on 12 and RGC Resources Inc. on 10.

Valuation

Metric RGCO SR Utilities Regulated Gas median
P/E 16.64 9.12 16.49
P/S 2.17 1.81 2.17
P/B 1.89 1.35 1.58
Price to free cash flow 111.29 n/m —
EV/EBITDA 12.40 11.80 11.86
EV/Sales 3.54 4.03 3.61
Earnings yield 6.01% 10.96% 6.01%
Free cash flow yield 0.90% (4.60%) (5.24%)

Profitability

Metric RGCO SR Utilities Regulated Gas median
Gross margin 51.39% 65.44% 63.14%
Operating margin 17.29% 21.47% 21.47%
Net margin 13.05% 19.81% 13.00%
Free cash flow margin 1.95% (8.30%) (13.27%)
Return on equity 11.69% 15.57% 9.47%
Return on assets 4.21% 4.17% 3.80%
Return on invested capital 4.29% 3.76% 4.29%

Growth

Metric RGCO SR Utilities Regulated Gas median
Revenue growth (TTM) 13.83% 16.97% 6.36%
EPS growth (last fiscal year) 11.21% 4.30% 14.04%
Revenue growth, 5-year CAGR 8.61% 5.94% 6.36%
Net income growth, 5-year CAGR 4.68% 28.34% 8.10%

Health

Metric RGCO SR Utilities Regulated Gas median
Debt to equity 1.22 1.67 1.22
Current ratio 0.94 0.37 0.78
Net debt to EBITDA 4.95 4.68 4.68

Dividend

Metric RGCO SR Utilities Regulated Gas median
Dividend yield 4.76% 4.02% 3.63%
Payout ratio 0.80 0.37 0.58

Size

Metric RGCO SR Utilities Regulated Gas median
Market cap 238.40m 4.77b 4.69b

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