Suburban Propane Partners (NYSE:SPH – Get Free Report) and RGC Resources (NASDAQ:RGCO – Get Free Report) are both small-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
Earnings and Valuation
This table compares Suburban Propane Partners and RGC Resources”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Suburban Propane Partners | $1.43 billion | 0.82 | $106.57 million | $1.96 | 8.99 |
| RGC Resources | $95.33 million | 2.41 | $13.28 million | $1.34 | 16.43 |
Dividends
Suburban Propane Partners pays an annual dividend of $1.30 per share and has a dividend yield of 7.4%. RGC Resources pays an annual dividend of $0.87 per share and has a dividend yield of 4.0%. Suburban Propane Partners pays out 66.3% of its earnings in the form of a dividend. RGC Resources pays out 64.9% 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.
Institutional & Insider Ownership
30.9% of Suburban Propane Partners shares are held by institutional investors. Comparatively, 35.8% of RGC Resources shares are held by institutional investors. 1.3% of Suburban Propane Partners shares are held by insiders. Comparatively, 7.2% of RGC Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Suburban Propane Partners and RGC Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Suburban Propane Partners | 9.37% | 18.57% | 5.25% |
| RGC Resources | 13.05% | 11.73% | 4.15% |
Risk & Volatility
Suburban Propane Partners has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, RGC Resources has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Suburban Propane Partners and RGC Resources, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Suburban Propane Partners | 0 | 1 | 0 | 2 | 3.33 |
| RGC Resources | 0 | 0 | 1 | 0 | 3.00 |
Summary
RGC Resources beats Suburban Propane Partners on 9 of the 17 factors compared between the two stocks.
About Suburban Propane Partners
Suburban Propane Partners, L.P., through its subsidiaries, engages in the retail marketing and distribution of propane, renewable propane, fuel oil, and refined fuels in the United States. The company operates through four segments: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. The Propane segment is involved in the retail distribution of propane for space heating, water heating, cooking, and clothes drying for use as a motor fuel in internal combustion engines to power over-the-road vehicles, forklifts, and stationary engines, as well as to fire furnaces as a cutting gas to the industrial customers; and for tobacco curing, crop drying, poultry brooding, and weed control in the agricultural markets. It also engages in the wholesale distribution of propane to industrial end users. Its Fuel Oil and Refined Fuels segment engages in the retail distribution of fuel oil, diesel, kerosene, and gasoline to residential and commercial customers for use in primarily as a source of heat in homes and buildings. The Natural Gas and Electricity segment markets natural gas and electricity to residential and commercial customers in the deregulated energy markets in New York and Pennsylvania. The All Other segment sells, installs, and services a range of home comfort equipment, including whole-house heating products, air cleaners, humidifiers, and space heaters. The company serves residential, commercial, industrial, and agricultural customers primarily in the east and west coast regions of the United States, as well as portions of the Midwest region of the United States and Alaska. Suburban Propane Partners, L.P. was founded in 1945 and is based in Whippany, New Jersey.
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.
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