WallStSmart

Black Hills Corporation (BKH)vsRGC Resources Inc (RGCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Black Hills Corporation generates 2250% more annual revenue ($2.31B vs $98.31M). RGCO leads profitability with a 13.1% profit margin vs 12.6%. RGCO appears more attractively valued with a PEG of 1.30. RGCO earns a higher WallStSmart Score of 57/100 (C).

BKH

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 5.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.92

RGCO

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 7.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BKHUndervalued (+16.7%)

Margin of Safety

+16.7%

Fair Value

$87.12

Current Price

$74.31

$12.81 discount

UndervaluedFair: $87.12Overvalued
RGCOUndervalued (+15.4%)

Margin of Safety

+15.4%

Fair Value

$25.63

Current Price

$22.73

$2.90 discount

UndervaluedFair: $25.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BKH2 strengths · Avg: 9.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
26.2%8/10

Strong operational efficiency at 26.2%

RGCO3 strengths · Avg: 8.0/10
P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

Areas to Watch

BKH4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.9%4/10

0.9% earnings growth

PEG RatioValuation
2.732/10

Expensive relative to growth rate

Free Cash FlowQuality
$-101.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

RGCO4 concerns · Avg: 2.5/10
Market CapQuality
$229.51M3/10

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

Comparative Analysis Report

WallStSmart Research

Bull Case : BKH

The strongest argument for BKH centers on Price/Book, Operating Margin.

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.

Bear Case : BKH

The primary concerns for BKH are EPS Growth, PEG Ratio, Free Cash Flow.

Bear Case : RGCO

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

Key Dynamics to Monitor

BKH carries more volatility with a beta of 0.71 — 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.

Monitor UTILITIES - REGULATED GAS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BKH scores higher overall (57/100 vs 57/100). RGCO offers better value entry with a 15.4% margin of safety. 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.

Black Hills Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

Black Hills Corporation is a natural gas and electric utility company in the United States. The company is headquartered in Rapid City, South Dakota.

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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