Reviewing Ultrapar Participacoes (NYSE:UGP) & North European Oil Royality Trust (NYSE:NRT)

Ultrapar Participacoes (NYSE:UGP) and North European Oil Royality Trust (NYSE:NRT) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Dividends

Ultrapar Participacoes pays an annual dividend of $0.31 per share and has a dividend yield of 4.1%. North European Oil Royality Trust pays an annual dividend of $1.04 per share and has a dividend yield of 11.6%. Ultrapar Participacoes pays out 50.8% of its earnings in the form of a dividend. North European Oil Royality Trust pays out 102.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ultrapar Participacoes and North European Oil Royality Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultrapar Participacoes	0	4	3	1	2.62
North European Oil Royality Trust	0	1	0	0	2.00

Ultrapar Participacoes currently has a consensus price target of $6.54, suggesting a potential downside of 13.66%. Given Ultrapar Participacoes’ stronger consensus rating and higher possible upside, equities analysts plainly believe Ultrapar Participacoes is more favorable than North European Oil Royality Trust.

Risk and Volatility

Ultrapar Participacoes has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, North European Oil Royality Trust has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.

Institutional & Insider Ownership

3.6% of Ultrapar Participacoes shares are held by institutional investors. Comparatively, 7.0% of North European Oil Royality Trust shares are held by institutional investors. 1.8% of Ultrapar Participacoes shares are held by company insiders. Comparatively, 3.5% of North European Oil Royality Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Ultrapar Participacoes and North European Oil Royality Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ultrapar Participacoes	2.28%	18.84%	7.17%
North European Oil Royality Trust	91.06%	491.20%	222.05%

Earnings and Valuation

This table compares Ultrapar Participacoes and North European Oil Royality Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ultrapar Participacoes	$25.51 billion	0.33	$439.48 million	$0.61	12.42
North European Oil Royality Trust	$8.65 million	9.50	$7.94 million	$1.02	8.76

Ultrapar Participacoes has higher revenue and earnings than North European Oil Royality Trust. North European Oil Royality Trust is trading at a lower price-to-earnings ratio than Ultrapar Participacoes, indicating that it is currently the more affordable of the two stocks.

Summary

Ultrapar Participacoes beats North European Oil Royality Trust on 9 of the 17 factors compared between the two stocks.

About Ultrapar Participacoes

Ultrapar Participações S.A., through its subsidiaries, operates in the energy and infrastructure business in Brazil. The company distributes liquefied petroleum gas to residential, commercial, and industrial consumers, in addition to renewable electricity and compressed natural gas. It also operates in the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants; and holds AmPm convenience stores and provides JetOil lubricant services. In addition, the company operates liquid bulk storage terminals. Further, it offers digital payments services, combining the abastece aí app and the loyalty program Km de Vantagens. It also exports its products and services to customers in Europe, Singapore, the United States, Canada, other Latin American countries, and internationally. The company was founded in 1937 and is headquartered in São Paulo, Brazil.

About North European Oil Royality Trust

North European Oil Royalty Trust, a grantor trust, holds overriding royalty rights covering gas and oil production in various concessions or leases in the Federal Republic of Germany. The company also has rights under contracts with German exploration and development subsidiaries of ExxonMobil Corp. and the Royal Dutch/Shell Group of Companies. In addition, it holds royalties for the sale of gas well gas, oil well gas, crude oil, condensate, and sulfur. North European Oil Royalty Trust was founded in 1975 and is based in Keene, New Hampshire.