Ultrapar Participacoes (UGP) versus Its Competitors Head-To-Head Analysis

Ultrapar Participacoes (NYSE: UGP) is one of 11 public companies in the “Natural gas distribution” industry, but how does it compare to its peers? We will compare Ultrapar Participacoes to similar businesses based on the strength of its dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Insider and Institutional Ownership

4.5% of Ultrapar Participacoes shares are owned by institutional investors. Comparatively, 72.1% of shares of all “Natural gas distribution” companies are owned by institutional investors. 1.7% of shares of all “Natural gas distribution” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Ultrapar Participacoes and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultrapar Participacoes 1.97% 17.10% 6.16%
Ultrapar Participacoes Competitors 7.67% -12.98% 6.04%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ultrapar Participacoes and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultrapar Participacoes 1 0 0 0 1.00
Ultrapar Participacoes Competitors 91 261 227 10 2.26

As a group, “Natural gas distribution” companies have a potential upside of 4.93%. Given Ultrapar Participacoes’ peers stronger consensus rating and higher probable upside, analysts plainly believe Ultrapar Participacoes has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Ultrapar Participacoes and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ultrapar Participacoes $25.07 billion $493.07 million 21.43
Ultrapar Participacoes Competitors $10.51 billion $337.54 million 21.56

Ultrapar Participacoes has higher revenue and earnings than its peers. Ultrapar Participacoes is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Ultrapar Participacoes pays an annual dividend of $0.54 per share and has a dividend yield of 2.8%. Ultrapar Participacoes pays out 59.3% of its earnings in the form of a dividend. As a group, “Natural gas distribution” companies pay a dividend yield of 2.9% and pay out 64.4% of their earnings in the form of a dividend. Ultrapar Participacoes has raised its dividend for 2 consecutive years.

Risk and Volatility

Ultrapar Participacoes has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Ultrapar Participacoes’ peers have a beta of 0.55, indicating that their average stock price is 45% less volatile than the S&P 500.

Summary

Ultrapar Participacoes peers beat Ultrapar Participacoes on 9 of the 15 factors compared.

Ultrapar Participacoes Company Profile

Ultrapar Participações S.A., through its subsidiaries, engages in the liquefied petroleum gas (LPG) distribution, fuel distribution, and related businesses. It operates through five segments: Gas Distribution, Fuel Distribution, Chemicals, Storage, and Drugstores. The Gas Distribution segment distributes LPG to residential, commercial, and industrial consumers, as well as independent dealers, principally in the South, Southeast, and Northeast regions of Brazil. The Fuel Distribution segment is involved in the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants and related activities through a network of 7,563 Ipiranga service stations. The 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. The Storage segment operates liquid bulk terminals, primarily in the Southeast and Northeast regions of Brazil. The Drugstores segment trades in pharmaceutical, hygiene, and beauty products through its own drugstore chain in the states of Amapá, Ceará, Maranhão, Pará, Paraíba, Pernambuco, Piauí, Rio Grande do Norte, São Paulo, and Tocantins. Further, it provides specialty chemicals; and stores liquid bulk in six ports. The company also has operations in the United States, Mexico, Uruguay, and Venezuela. Ultrapar Participações S.A. was founded in 1937 and is headquartered in Sao Paulo, Brazil.

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