RGCO vs YORW

For growth investors, The York Water Company (YORW) is the stronger pick with 3.

4% revenue growth year-over-year, versus -13. 1% for RGC Resources, Inc. (RGCO). RGC Resources, Inc. (RGCO) offers the better valuation at 19. 8x trailing P/E (17. 6x 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, RGC Resources, Inc.

(RGCO) is the cheapest at 19. 8x versus The York Water Company at 20. 9x. On forward P/E, RGC Resources, Inc. is actually cheaper at 17. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The York Water Company wins at 9. 83x versus RGC Resources, Inc. 's 12. 20x.

Over the past 5 years, RGC Resources, Inc.

(RGCO) delivered a total return of +23. 4%, compared to -32. 1% for The York Water Company (YORW). Over 10 years, the gap is even starker: RGCO returned +107. 0% versus YORW's +24. 9%. 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), The York Water Company (YORW) is the lower-risk stock at 0.

08β versus RGC Resources, Inc. 's 0. 65β — meaning RGCO is approximately 732% more volatile than YORW relative to the S&P 500. On balance sheet safety, The York Water Company (YORW) carries a lower debt/equity ratio of 97% versus 137% for RGC Resources, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The York Water Company (YORW) is pulling ahead at 3.

4% versus -13. 1% for RGC Resources, Inc. (RGCO). On earnings-per-share growth, the picture is similar: RGC Resources, Inc. grew EPS 1. 8% year-over-year, compared to -2. 1% for The York Water Company. Over a 3-year CAGR, YORW leads at 8. 9% 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.

The York Water Company (YORW) is the more profitable company, earning 25.

9% net margin versus 13. 9% for RGC Resources, Inc. — meaning it keeps 25. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: YORW leads at 35. 8% versus 20. 2% for RGCO. At the gross margin level — before operating expenses — YORW leads at 54. 8%, 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, The York Water Company (YORW) is the more undervalued stock at a PEG of 9. 83x versus RGC Resources, Inc. 's 12. 20x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, RGC Resources, Inc. (RGCO) trades at 17. 6x forward P/E versus 17. 9x for The York Water Company — 0. 3x 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. 0% for The York Water Company (YORW).

For long-horizon retirement investors, The York Water Company (YORW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

08), 3. 0% yield). Both have compounded well over 10 years (YORW: +24. 9%, RGCO: +107. 0%), 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.

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.