WallStSmart

RGC Resources Inc (RGCO)vsSouthwest Gas Holdings Inc (SWX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southwest Gas Holdings Inc generates 1874% more annual revenue ($1.94B vs $98.31M). SWX leads profitability with a 22.7% profit margin vs 13.1%. RGCO appears more attractively valued with a PEG of 1.30. SWX earns a higher WallStSmart Score of 57/100 (C).

RGCO

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 0.90

SWX

Buy

57

out of 100

Grade: C

Growth: 2.0Profit: 6.5Value: 7.3Quality: 4.8
Piotroski: 4/9Altman Z: 0.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RGCOSignificantly Overvalued (-155.1%)

Margin of Safety

-155.1%

Fair Value

$8.50

Current Price

$21.09

$12.59 premium

UndervaluedFair: $8.50Overvalued
SWXSignificantly Overvalued (-289.0%)

Margin of Safety

-289.0%

Fair Value

$22.10

Current Price

$85.82

$63.72 premium

UndervaluedFair: $22.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RGCO3 strengths · Avg: 8.0/10
P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

SWX3 strengths · Avg: 9.0/10
Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

Profit MarginProfitability
22.7%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

RGCO4 concerns · Avg: 2.5/10
Market CapQuality
$223.79M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.343/10

Elevated debt levels

EPS GrowthGrowth
-7.8%2/10

Earnings declined 7.8%

Free Cash FlowQuality
$-4.56M2/10

Negative free cash flow — burning cash

SWX4 concerns · Avg: 3.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

P/E RatioValuation
26.6x4/10

Moderate valuation

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Revenue GrowthGrowth
-13.1%2/10

Revenue declined 13.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : RGCO

The strongest argument for RGCO centers on P/E Ratio, Price/Book, Operating Margin. Revenue growth of 10.9% demonstrates continued momentum. PEG of 1.30 suggests the stock is reasonably priced for its growth.

Bull Case : SWX

The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 22.7% and operating margin at 33.9%.

Bear Case : RGCO

The primary concerns for RGCO are Market Cap, Debt/Equity, EPS Growth.

Bear Case : SWX

The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

RGCO profiles as a value stock while SWX is a declining play — different risk/reward profiles.

SWX carries more volatility with a beta of 0.60 — expect wider price swings.

RGCO is growing revenue faster at 10.9% — sustainability is the question.

RGCO generates stronger free cash flow (-5M), providing more financial flexibility.

Bottom Line

RGCO scores higher overall (57/100 vs 57/100) and 10.9% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

RGC Resources Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

RGC Resources, Inc. is an energy services company. The company is headquartered in Roanoke, Virginia.

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Southwest Gas Holdings Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.

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