Analyzing Synthesis Energy Systems (OTCMKTS:SYNE) & RGC Resources (NASDAQ:RGCO)

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

Risk and Volatility

Synthesis Energy Systems has a beta of -44.08, meaning that its stock price is 4,508% less volatile than the S&P 500. Comparatively, RGC Resources has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Valuation & Earnings

This table compares Synthesis Energy Systems and RGC Resources”s revenue, earnings per share (EPS) 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	2.36	$13.28 million	$1.28	16.96

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

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%

Institutional & Insider Ownership

35.8% of RGC Resources shares are held by institutional investors. 12.3% of Synthesis Energy Systems shares are held by company insiders. Comparatively, 7.2% of RGC Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Synthesis Energy Systems and RGC Resources, as reported 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 possible upside, equities research analysts plainly 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.