Analyzing Regency Energy Partners (NASDAQ:RGNC) and Delta Natural Gas (DGAS)

Regency Energy Partners (NASDAQ: RGNC) and Delta Natural Gas (NASDAQ:DGAS) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Dividends

Delta Natural Gas pays an annual dividend of $0.83 per share and has a dividend yield of 2.7%. Regency Energy Partners does not pay a dividend. Delta Natural Gas pays out 93.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Regency Energy Partners and Delta Natural Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regency Energy Partners -0.30% -0.47% -0.07%
Delta Natural Gas 9.35% 8.08% 3.31%

Analyst Ratings

This is a summary of recent ratings and target prices for Regency Energy Partners and Delta Natural Gas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regency Energy Partners 0 0 0 0 N/A
Delta Natural Gas 0 0 0 0 N/A

Earnings & Valuation

This table compares Regency Energy Partners and Delta Natural Gas’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Regency Energy Partners N/A N/A N/A N/A N/A
Delta Natural Gas $67.09 million 3.24 $20.21 million $0.89 34.24

Delta Natural Gas has higher revenue and earnings than Regency Energy Partners.

Institutional & Insider Ownership

35.8% of Delta Natural Gas shares are held by institutional investors. 4.2% of Delta Natural Gas shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Delta Natural Gas beats Regency Energy Partners on 7 of the 8 factors compared between the two stocks.

About Regency Energy Partners

Regency Energy Partners LP gathers and processes, compress, treats and transports natural gas; transports, fractionates and stores natural gas liquids (NGLs); gathers, transports and terminals oil received from producers; gathers and disposes salt water, and manages coal and natural resource properties in the United States. The Company has six business segments: Gathering and Processing, Natural Gas Transportation, NGL Services, Contract Services, Natural Resources and Corporate. The Gathering and Processing segment provides wellhead-to-market services to producers of natural gas. The Natural Gas Transportation segment owns a 49.99% general partner interest in RIGS Haynesville Partnership Co. The NGL Services segment owns a 30% membership interest in Lone Star NGL LLC. The Contract Services segment owns and operates a fleet of compressors. The Natural Resources segment manages coal and natural resources properties. The Corporate segment includes its corporate assets.

About Delta Natural Gas

Delta Natural Gas Company, Inc. distributes or transports natural gas to approximately 36,000 customers. The Company’s segments include regulated segment and non-regulated segment. Through regulated segment, the Company distributes natural gas to its retail customers in approximately 23 rural counties. Its three service areas are Nicholasville, Corbin and Berea, Kentucky. The non-regulated segment includes the Company’s three subsidiaries, Delta Resources, Inc. and Delgasco, Inc. (Delgasco), which purchase natural gas in the open market, including natural gas from Kentucky producers, and Enpro, Inc. (Enpro), which produces natural gas that is sold to Delgasco for resale in the open market. The Company owns approximately 2,600 miles of natural gas gathering, transmission, distribution and storage lines. These lines range in size over 12 inches in diameter. It also holds leases for the storage of natural gas under approximately 8,000 acres located in Bell County, Kentucky.

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