Reviewing RGC Resources (NASDAQ:RGCO) & PT Perusahaan Gas Negara Tbk (OTCMKTS:PPAAF)

PT Perusahaan Gas Negara Tbk (OTCMKTS:PPAAF) and RGC Resources (NASDAQ:RGCO) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Dividends

PT Perusahaan Gas Negara Tbk pays an annual dividend of $0.01 per share and has a dividend yield of 17.5%. RGC Resources pays an annual dividend of $0.87 per share and has a dividend yield of 4.0%. PT Perusahaan Gas Negara Tbk pays out 38.7% 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 raised its dividend for 22 consecutive years. PT Perusahaan Gas Negara Tbk is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares PT Perusahaan Gas Negara Tbk and RGC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT Perusahaan Gas Negara Tbk	N/A	N/A	N/A
RGC Resources	13.05%	11.73%	4.15%

Analyst Ratings

This is a summary of recent recommendations and price targets for PT Perusahaan Gas Negara Tbk and RGC Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Perusahaan Gas Negara Tbk	0	0	0	0	0.00
RGC Resources	0	0	1	0	3.00

Insider & Institutional Ownership

21.0% of PT Perusahaan Gas Negara Tbk shares are owned by institutional investors. Comparatively, 35.8% of RGC Resources shares are owned by institutional investors. 7.2% of RGC Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares PT Perusahaan Gas Negara Tbk and RGC Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT Perusahaan Gas Negara Tbk	N/A	N/A	N/A	$0.04	2.21
RGC Resources	$95.33 million	2.39	$13.28 million	$1.34	16.31

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

Summary

RGC Resources beats PT Perusahaan Gas Negara Tbk on 11 of the 13 factors compared between the two stocks.

About PT Perusahaan Gas Negara Tbk

PT Perusahaan Gas Negara Tbk, together with its subsidiaries, engages in the transmission and distribution of natural gas in Indonesia. It operates through three segments: Gas Trading and Transmission, Exploration and Production of Oil and Gas, and Other Operations. The company is involved in the exploration, exploitation, and business development in oil and gas; and trading and transmission of gas, and processing of liquefied natural gas to industrial, commercial and household customers. It also provides fiber optic rental for network services; construction and maintenance services to the customers; management and leasing services of buildings and equipment; engineering and consultancy services; telecommunications; and electricity services. The company was founded in 1859 and is headquartered in Jakarta, Indonesia. PT Perusahaan Gas Negara Tbk operates as a subsidiary of PT Pertamina (Persero).

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.