Contrasting RGC Resources (NASDAQ:RGCO) and CVR Energy (NYSE:CVI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CVR Energy	0.38%	-14.31%	-3.03%
RGC Resources	13.11%	11.11%	3.90%

Analyst Ratings

This is a breakdown of recent ratings for CVR Energy and RGC Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVR Energy	4	2	0	0	1.33
RGC Resources	0	0	1	0	3.00

CVR Energy currently has a consensus price target of $31.25, suggesting a potential upside of 1.52%. Given CVR Energy’s higher possible upside, analysts clearly believe CVR Energy is more favorable than RGC Resources.

Volatility & Risk

CVR Energy has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, RGC Resources has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Institutional and Insider Ownership

98.9% of CVR Energy shares are owned by institutional investors. Comparatively, 35.8% of RGC Resources shares are owned by institutional investors. 0.0% of CVR Energy shares are owned by company insiders. Comparatively, 7.2% of RGC Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares CVR Energy and RGC Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVR Energy	$7.16 billion	0.43	$27.00 million	$0.26	118.40
RGC Resources	$95.33 million	2.53	$13.28 million	$1.24	18.69

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

Summary

RGC Resources beats CVR Energy on 8 of the 14 factors compared between the two stocks.

About CVR Energy

CVR Energy, Inc., together with its subsidiaries, engages in the petroleum refining and marketing, and nitrogen fertilizer manufacturing activities in the United States. It operates in two segments, Petroleum and Nitrogen Fertilizer. The Petroleum segment refines and supplies gasoline, crude oil, distillate, diesel fuel, and other refined products. This segment also owns and operates a coking medium-sour crude oil refinery in southeast Kansas; and a crude oil refinery in Wynnewood, Oklahoma, as well as supporting logistics assets. This segment primarily serves retailers, railroads, farm cooperatives, and other refiners/marketers. The Nitrogen Fertilizer segment owns and operates a nitrogen fertilizer plant in North America that utilizes a pet coke gasification process to produce nitrogen fertilizer products; and a nitrogen fertilizer facility in East Dubuque, Illinois that produces nitrogen fertilizers in the form of ammonia and urea ammonium nitrate (UAN), nitric acid, and liquid and granulated urea. This segment primarily markets UAN products to agricultural customers; and ammonia products to agricultural and industrial customers. The company was founded in 1906 and is based in Sugar Land, Texas. CVR Energy, Inc. is a subsidiary of Icahn Enterprises L.P.

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.