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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RGC Resources	$95.33 million	2.46	$13.28 million	$1.28	17.68
Synthesis Energy Systems	N/A	N/A	N/A	N/A	N/A

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

Volatility and Risk

RGC Resources has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Synthesis Energy Systems has a beta of -44.1, indicating that its stock price is 4,510% 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

Insider & Institutional 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 company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets 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.