RGC Resources (NASDAQ:RGCO) and Equinor ASA (NYSE:EQNR) Head to Head Comparison

Equinor ASA (NYSE:EQNR) and RGC Resources (NASDAQ:RGCO) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Dividends

Equinor ASA pays an annual dividend of $1.22 per share and has a dividend yield of 4.8%. RGC Resources pays an annual dividend of $0.83 per share and has a dividend yield of 3.7%. Equinor ASA pays out 40.5% of its earnings in the form of a dividend. RGC Resources pays out 63.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RGC Resources has increased its dividend for 22 consecutive years. Equinor ASA is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Equinor ASA and RGC Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equinor ASA	$103.77 billion	0.72	$8.81 billion	$3.01	8.48
RGC Resources	$84.64 million	2.77	$11.76 million	$1.31	17.34

Equinor ASA has higher revenue and earnings than RGC Resources. Equinor ASA is trading at a lower price-to-earnings ratio than RGC Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Equinor ASA and RGC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equinor ASA	7.60%	16.91%	5.43%
RGC Resources	14.48%	12.01%	4.17%

Volatility & Risk

Equinor ASA has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, RGC Resources has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Institutional and Insider Ownership

5.5% of Equinor ASA shares are held by institutional investors. Comparatively, 35.8% of RGC Resources shares are held by institutional investors. 0.0% of Equinor ASA shares are held by company insiders. Comparatively, 6.6% of RGC Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Equinor ASA and RGC Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equinor ASA	7	5	4	0	1.81
RGC Resources	0	0	0	0	0.00

Equinor ASA presently has a consensus target price of $22.71, suggesting a potential downside of 10.98%. Given Equinor ASA’s stronger consensus rating and higher probable upside, equities analysts clearly believe Equinor ASA is more favorable than RGC Resources.

Summary

Equinor ASA beats RGC Resources on 11 of the 17 factors compared between the two stocks.

About Equinor ASA

Equinor ASA, an energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and other forms of energy in Norway and internationally. It operates through Exploration & Production Norway; Exploration & Production International; Exploration & Production USA; Marketing, Midstream & Processing; Renewables; and Other segments. The company also transports, processes, manufactures, markets, and trades in oil and gas commodities, such as crude and condensate products, gas liquids, natural gas, and liquefied natural gas; trades in power and emissions; operates refineries, terminals and processing, and power plants; and develops low carbon solutions for oil and gas. In addition, it develops carbon capture and storage projects; provides transportation solutions, including pipelines, shipping, trucking, and rail; and develops and explores for renewable energy, such as offshore wind, green hydrogen, and solar power. The company was formerly known as Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was incorporated in 1972 and is headquartered in Stavanger, Norway.

About RGC Resources

RGC Resources, Inc., through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. The company also provides various unregulated services. It operates approximately 1,179 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates six metering stations. In addition, it produces biogas. RGC Resources, Inc. was founded in 1883 and is based in Roanoke, Virginia.