RGCO vs NJR

For growth investors, New Jersey Resources Corporation (NJR) is the stronger pick with 13.

9% revenue growth year-over-year, versus 12. 6% for RGC Resources, Inc. (RGCO). New Jersey Resources Corporation (NJR) offers the better valuation at 16. 7x trailing P/E (16. 4x forward), making it the more compelling value choice. Analysts rate RGC Resources, Inc. (RGCO) a "Buy" — based on 4 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, New Jersey Resources Corporation (NJR) is the cheapest at 16.

7x versus RGC Resources, Inc. at 18. 3x. On forward P/E, New Jersey Resources Corporation is actually cheaper at 16. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: New Jersey Resources Corporation wins at 1. 15x versus RGC Resources, Inc. 's 12. 54x — a reasonable growth-adjusted valuation.

Over the past 5 years, New Jersey Resources Corporation (NJR) delivered a total return of +46.

6%, compared to +28. 2% for RGC Resources, Inc. (RGCO). Over 10 years, the gap is even starker: RGCO returned +108. 5% versus NJR's +90. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), New Jersey Resources Corporation (NJR) is the lower-risk stock at -0.

13β versus RGC Resources, Inc. 's 0. 65β — meaning RGCO is approximately -588% more volatile than NJR relative to the S&P 500. On balance sheet safety, RGC Resources, Inc. (RGCO) carries a lower debt/equity ratio of 131% versus 158% for New Jersey Resources Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), New Jersey Resources Corporation (NJR) is pulling ahead at 13.

9% versus 12. 6% for RGC Resources, Inc. (RGCO). On earnings-per-share growth, the picture is similar: New Jersey Resources Corporation grew EPS 14. 0% year-over-year, compared to 11. 2% for RGC Resources, Inc.. Over a 3-year CAGR, RGCO leads at 4. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

New Jersey Resources Corporation (NJR) is the more profitable company, earning 16.

5% net margin versus 13. 9% for RGC Resources, Inc. — meaning it keeps 16. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NJR leads at 21. 4% versus 19. 4% for RGCO. At the gross margin level — before operating expenses — RGCO leads at 34. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, New Jersey Resources Corporation (NJR) is the more undervalued stock at a PEG of 1. 15x versus RGC Resources, Inc. 's 12. 54x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, New Jersey Resources Corporation (NJR) trades at 16. 4x forward P/E versus 18. 1x for RGC Resources, Inc. — 1. 6x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

RGC Resources, Inc. (RGCO) offers the highest yield at 3. 5%, versus 3. 2% for New Jersey Resources Corporation (NJR).

For long-horizon retirement investors, New Jersey Resources Corporation (NJR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

13), 3. 2% yield). Both have compounded well over 10 years (NJR: +90. 4%, RGCO: +108. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: RGCO is a small-cap income-oriented stock; NJR is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.