RGC Resources (NASDAQ:RGCO) versus Synthesis Energy Systems (OTCMKTS:SYNE) Financial Survey

RGC Resources (NASDAQ:RGCO) and Synthesis Energy Systems (OTCMKTS:SYNE) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Institutional and Insider Ownership

35.8% of RGC Resources shares are owned by institutional investors. 7.2% of RGC Resources shares are owned by company insiders. Comparatively, 12.3% of Synthesis Energy Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

RGC Resources has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Synthesis Energy Systems has a beta of -44.08, meaning that its share price is 4,508% less volatile than the S&P 500.

Profitability

This table compares RGC Resources and Synthesis Energy Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RGC Resources	13.93%	11.56%	4.04%
Synthesis Energy Systems	N/A	N/A	N/A

Earnings & Valuation

This table compares RGC Resources and Synthesis Energy Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RGC Resources	$95.33 million	2.41	$13.28 million	$1.28	17.36
Synthesis Energy Systems	N/A	N/A	N/A	N/A	N/A

RGC Resources has higher revenue and earnings than Synthesis Energy Systems.

Analyst Recommendations

This is a breakdown of current ratings for RGC Resources and Synthesis Energy Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RGC Resources	0	1	0	0	2.00
Synthesis Energy Systems	0	0	0	0	0.00

Given Synthesis Energy Systems’ higher probable upside, analysts plainly believe Synthesis Energy Systems is more favorable than RGC Resources.

Summary

RGC Resources beats Synthesis Energy Systems on 7 of the 9 factors compared between the two stocks.

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.

About Synthesis Energy Systems

Synthesis Energy Systems, Inc., an energy company, engages in licensing and commercializing SES gasification technology for the production of synthesis gas in China and internationally. Synthesis Energy Systems, Inc. was founded in 2003 and is headquartered in Houston, Texas.