UGI (UGI) vs. Its Competitors Critical Contrast

UGI (NYSE:UGI) is one of 17 public companies in the “UTIL – GAS DISTR” industry, but how does it compare to its rivals? We will compare UGI to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, valuation, risk, dividends and profitability.

Analyst Ratings

This is a summary of recent ratings for UGI and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UGI	0	1	4	0	2.80
UGI Competitors	430	1123	803	35	2.19

UGI currently has a consensus price target of $44.50, suggesting a potential upside of 25.79%. As a group, “UTIL – GAS DISTR” companies have a potential upside of 4.56%. Given UGI’s stronger consensus rating and higher probable upside, research analysts plainly believe UGI is more favorable than its rivals.

Dividends

UGI pays an annual dividend of $1.50 per share and has a dividend yield of 4.2%. UGI pays out 55.4% of its earnings in the form of a dividend. As a group, “UTIL – GAS DISTR” companies pay a dividend yield of 2.9% and pay out 57.2% of their earnings in the form of a dividend. UGI has increased its dividend for 37 consecutive years. UGI is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

82.3% of UGI shares are held by institutional investors. Comparatively, 74.1% of shares of all “UTIL – GAS DISTR” companies are held by institutional investors. 0.6% of UGI shares are held by company insiders. Comparatively, 8.4% of shares of all “UTIL – GAS DISTR” companies 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.

Profitability

This table compares UGI and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UGI	8.17%	14.46%	4.57%
UGI Competitors	7.33%	5.38%	1.30%

Valuation & Earnings

This table compares UGI and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
UGI	$7.29 billion	$678.00 million	13.05
UGI Competitors	$5.54 billion	$445.50 million	17.76

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

Volatility & Risk

UGI has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, UGI’s rivals have a beta of 0.69, suggesting that their average share price is 31% less volatile than the S&P 500.

Summary

UGI beats its rivals on 12 of the 15 factors compared.

UGI Company Profile

UGI Corporation, together with its subsidiaries, distributes, stores, transports, and markets energy products and related services in the United States and internationally. The company operates through four segments: AmeriGas Propane, UGI International, Midstream & Marketing, and UGI Utilities. It distributes propane to approximately 1.3 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,400 propane distribution locations. The company distributes liquefied petroleum gases (LPG) to residential, commercial, industrial, agricultural, wholesale and automobile fuel customers; and provides logistics, storage, and other services to third-party LPG distributors. In addition, it engages in the retail sale of natural gas, liquid fuels, and electricity to approximately 12,400 residential, commercial, and industrial customers at 42,000 locations. Further, the company distributes natural gas to approximately 677,000 customers in eastern and central Pennsylvania counties through its distribution system of approximately 12,500 miles of gas mains; and supplies electricity to approximately 62,600 customers in northeastern Pennsylvania through 2,560 miles of lines and 14 substations. Additionally, it operates electric generation facilities, which include coal-fired, landfill gas-fueled, solar-powered, and natural gas-fueled facilities; a natural gas liquefaction, storage, and vaporization facility; propane storage and propane-air mixing stations; and rail transshipment terminals. It manages natural gas pipeline and storage contracts; develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities. UGI Corporation was incorporated in 1882 and is headquartered in King of Prussia, Pennsylvania.