Ultrapar Participacoes (NYSE:UGP) & ENAGAS S A/ADR (NYSE:ENGGY) Critical Review

Ultrapar Participacoes (NYSE:UGP) and ENAGAS S A/ADR (OTCMKTS:ENGGY) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Ultrapar Participacoes and ENAGAS S A/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultrapar Participacoes 1.32% 11.93% 3.82%
ENAGAS S A/ADR N/A N/A N/A



Analyst Ratings

This is a summary of current ratings and recommmendations for Ultrapar Participacoes and ENAGAS S A/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultrapar Participacoes 0 4 1 0 2.20
ENAGAS S A/ADR 3 0 0 0 1.00

Ultrapar Participacoes currently has a consensus price target of $5.00, indicating a potential upside of 8.93%. Given Ultrapar Participacoes’ stronger consensus rating and higher possible upside, research analysts plainly believe Ultrapar Participacoes is more favorable than ENAGAS S A/ADR.

Dividends

Ultrapar Participacoes pays an annual dividend of $0.09 per share and has a dividend yield of 2.0%. ENAGAS S A/ADR pays an annual dividend of $0.74 per share and has a dividend yield of 6.4%. Ultrapar Participacoes pays out 32.1% of its earnings in the form of a dividend.

Risk and Volatility

Ultrapar Participacoes has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, ENAGAS S A/ADR has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ultrapar Participacoes and ENAGAS S A/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ultrapar Participacoes $23.82 billion 0.21 $314.76 million $0.28 16.39
ENAGAS S A/ADR $1.53 billion 3.61 $522.74 million N/A N/A

ENAGAS S A/ADR has lower revenue, but higher earnings than Ultrapar Participacoes.

Insider & Institutional Ownership

3.4% of Ultrapar Participacoes shares are owned by institutional investors. Comparatively, 0.3% of ENAGAS S A/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Ultrapar Participacoes beats ENAGAS S A/ADR on 9 of the 13 factors compared between the two stocks.

Ultrapar Participacoes Company Profile

Ultrapar Participações S.A. engages in the gas distribution, fuel distribution, chemicals, storage, and drugstores businesses primarily in Brazil, Mexico, Uruguay, Venezuela, other Latin American countries, the United States, Canada, the Far East, Europe, and internationally. The company's Gas Distribution segment distributes liquefied petroleum gas to residential, commercial, and industrial consumers, as well as independent dealers primarily in the South, Southeast, and Northeast regions of Brazil. Its Fuel Distribution segment distributes and markets gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants and related activities through a network of 7,218 Ipiranga service stations. The company's Chemicals segment produces ethylene oxide and its derivatives, as well as fatty alcohols, which are raw materials used in the home and personal care, agrochemical, paints, varnishes, and other industries. Its Storage segment operates liquid bulk terminals primarily in the Southeast and Northeast regions of Brazil. The company's Drugstores segment trades in pharmaceutical, hygiene, and beauty products through its own drugstore chain in the North, Northeast, and Southeast regions of Brazil. Ultrapar Participações S.A. was founded in 1937 and is headquartered in São Paulo, Brazil.

ENAGAS S A/ADR Company Profile

Enagás, S.A. engages in the development, operation, and maintenance of gas infrastructures in Spain and internationally. The company provides gas transportation services through gas pipelines; natural gas regasification services; and operates underground storage facilities. It is involved in the operation and technical management of the basic network and secondary transportation network for natural gas. The company operates approximately 12,000 kilometers of gas pipelines, 19 compressor stations and 416 regulation and metering stations. Enagás, S.A. was founded in 1972 and is based in Madrid, Spain.

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