Comparing Tokyo Gas Co.,Ltd. (OTCMKTS:TKGSY) & RGC Resources (NASDAQ:RGCO)

RGC Resources (NASDAQ:RGCO) and Tokyo Gas Co.,Ltd. (OTCMKTS:TKGSY) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for RGC Resources and Tokyo Gas Co.,Ltd., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RGC Resources	0	0	1	0	3.00
Tokyo Gas Co.,Ltd.	0	0	0	0	0.00

Dividends

RGC Resources pays an annual dividend of $0.87 per share and has a dividend yield of 4.0%. Tokyo Gas Co.,Ltd. pays an annual dividend of $0.22 per share and has a dividend yield of 1.2%. RGC Resources pays out 64.9% of its earnings in the form of a dividend. Tokyo Gas Co.,Ltd. pays out 0.1% 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 increased its dividend for 22 consecutive years. RGC Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

35.8% of RGC Resources shares are held by institutional investors. Comparatively, 0.1% of Tokyo Gas Co.,Ltd. shares are held by institutional investors. 7.2% of RGC Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares RGC Resources and Tokyo Gas Co.,Ltd.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RGC Resources	$107.14 million	2.10	$13.28 million	$1.34	16.10
Tokyo Gas Co.,Ltd.	N/A	N/A	N/A	$197.62	0.10

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

Profitability

This table compares RGC Resources and Tokyo Gas Co.,Ltd.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RGC Resources	13.05%	11.85%	4.16%
Tokyo Gas Co.,Ltd.	N/A	N/A	N/A

Summary

RGC Resources beats Tokyo Gas Co.,Ltd. on 11 of the 13 factors compared between the two stocks.

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.

About Tokyo Gas Co.,Ltd.

Tokyo Gas Co.,Ltd. engages in the production, supply, and sale of city gas, and LNG in Japan. The company offers engineering solutions; gas construction; and gas pipelines services, as well as engages in gas appliances business. It is also involved in fuel procurement, power generation, and sales of electricity; and overseas resource development, renewable energy, and LNG infrastructure business. In addition, the company provides district heating and cooling, and energy services; and develops LNG terminals and pipes. Further, it engages in the real estate development activities; and leasing and management of land and buildings. The company was formerly known as Tokyo Gas Company and changed its name to Tokyo Gas Co.,Ltd. in July 1893. The company was incorporated in 1885 and is headquartered in Tokyo, Japan.