Head to Head Comparison: Delta Natural Gas (DGAS) and UGI Corporation (UGI)
Delta Natural Gas (NASDAQ: DGAS) and UGI Corporation (NYSE:UGI) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Institutional and Insider Ownership
37.4% of Delta Natural Gas shares are owned by institutional investors. Comparatively, 77.9% of UGI Corporation shares are owned by institutional investors. 4.2% of Delta Natural Gas shares are owned by company insiders. Comparatively, 2.2% of UGI Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Delta Natural Gas pays an annual dividend of $0.83 per share and has a dividend yield of 2.7%. UGI Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Delta Natural Gas pays out 93.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UGI Corporation pays out 45.9% of its earnings in the form of a dividend. UGI Corporation has raised its dividend for 31 consecutive years.
Volatility and Risk
Delta Natural Gas has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, UGI Corporation has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
This table compares Delta Natural Gas and UGI Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delta Natural Gas||8.00%||7.12%||2.91%|
Earnings and Valuation
This table compares Delta Natural Gas and UGI Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Delta Natural Gas||$68.84 million||3.18||$19.26 million||$0.89||34.48|
|UGI Corporation||$5.98 billion||1.40||$1.35 billion||$2.18||22.14|
UGI Corporation has higher revenue and earnings than Delta Natural Gas. UGI Corporation is trading at a lower price-to-earnings ratio than Delta Natural Gas, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Delta Natural Gas and UGI Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delta Natural Gas||0||0||0||0||N/A|
UGI Corporation has a consensus target price of $46.00, suggesting a potential downside of 4.70%. Given UGI Corporation’s higher possible upside, analysts clearly believe UGI Corporation is more favorable than Delta Natural Gas.
UGI Corporation beats Delta Natural Gas on 11 of the 16 factors compared between the two stocks.
About Delta Natural Gas
Delta Natural Gas Company, Inc. distributes or transports natural gas to approximately 36,000 customers. The Company’s segments include regulated segment and non-regulated segment. Through regulated segment, the Company distributes natural gas to its retail customers in approximately 23 rural counties. Its three service areas are Nicholasville, Corbin and Berea, Kentucky. The non-regulated segment includes the Company’s three subsidiaries, Delta Resources, Inc. and Delgasco, Inc. (Delgasco), which purchase natural gas in the open market, including natural gas from Kentucky producers, and Enpro, Inc. (Enpro), which produces natural gas that is sold to Delgasco for resale in the open market. The Company owns approximately 2,600 miles of natural gas gathering, transmission, distribution and storage lines. These lines range in size over 12 inches in diameter. It also holds leases for the storage of natural gas under approximately 8,000 acres located in Bell County, Kentucky.
About UGI Corporation
UGI Corporation is a holding company. The Company distributes, stores, transports and markets energy products and related services. It operates through six segments. The AmeriGas Propane segment consists of the propane distribution business of AmeriGas Partners, L.P. The UGI France segment consists of the French LPG distribution business of its subsidiaries, Antargaz, Finagaz and its liquefied petroleum gases (LPG) distribution businesses. The Flaga & Other segment consists of the LPG distribution businesses of Flaga GmbH, AvantiGas Limited and ChinaGas Partners, L.P. The Energy Services segment consists of energy-related businesses conducted by its subsidiary, UGI Energy Services, LLC (Energy Services). The Electric Generation segment consists of electric generation facilities conducted by Energy Services’ subsidiary. The Gas Utility segment consists of the regulated natural gas distribution businesses of its subsidiary, UGI Utilities, Inc.
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