Critical Comparison: Synthesis Energy Systems (OTCMKTS:SYNE) vs. RGC Resources (NASDAQ:RGCO)

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

Risk and Volatility

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

Earnings and Valuation

This table compares Synthesis Energy Systems 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
Synthesis Energy Systems	N/A	N/A	N/A	N/A	N/A
RGC Resources	$95.33 million	2.44	$13.28 million	$1.28	17.57

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

Insider and Institutional Ownership

35.8% of RGC Resources shares are owned by institutional investors. 12.3% of Synthesis Energy Systems shares are owned by company insiders. Comparatively, 7.2% of RGC Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Synthesis Energy Systems and RGC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synthesis Energy Systems	N/A	N/A	N/A
RGC Resources	13.93%	11.56%	4.04%

Analyst Recommendations

This is a breakdown of current recommendations for Synthesis Energy Systems and RGC Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synthesis Energy Systems	0	0	0	0	0.00
RGC Resources	0	1	0	0	2.00

Given Synthesis Energy Systems’ higher probable upside, analysts clearly 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 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.

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.