WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southwest Gas Holdings Inc generates 1525% more annual revenue ($1.74B vs $107.14M). SWX leads profitability with a 31.4% profit margin vs 13.1%. RGCO appears more attractively valued with a PEG of 1.30. SWX earns a higher WallStSmart Score of 65/100 (B-).

RGCO

Hold

47

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 6.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.90

SWX

Strong Buy

65

out of 100

Grade: B-

Growth: 4.0Profit: 7.0Value: 5.0Quality: 4.5
Piotroski: 5/9Altman Z: 0.89

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RGCO2 strengths · Avg: 8.0/10
P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

SWX4 strengths · Avg: 8.5/10
Profit MarginProfitability
31.4%10/10

Keeps 31 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.2%8/10

Strong operational efficiency at 24.2%

EPS GrowthGrowth
20.9%8/10

Earnings expanding 20.9% YoY

Areas to Watch

RGCO4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$228.50M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.213/10

Elevated debt levels

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

SWX4 concerns · Avg: 2.5/10
PEG RatioValuation
1.864/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.6%2/10

Revenue declined 9.6%

Free Cash FlowQuality
$-174.31M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.892/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : RGCO

The strongest argument for RGCO centers on P/E Ratio, Price/Book. PEG of 1.30 suggests the stock is reasonably priced for its growth.

Bull Case : SWX

The strongest argument for SWX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 31.4% and operating margin at 24.2%.

Bear Case : RGCO

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

Bear Case : SWX

The primary concerns for SWX are PEG Ratio, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

SWX carries more volatility with a beta of 0.56 — expect wider price swings.

RGCO is growing revenue faster at -0.9% — sustainability is the question.

RGCO generates stronger free cash flow (-323,493), providing more financial flexibility.

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

Bottom Line

SWX scores higher overall (65/100 vs 47/100), backed by strong 31.4% margins. Both earn "Strong Buy" and "Hold" 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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