UGI Corporation (NYSE: UGI) and Chesapeake Utilities Corporation (NYSE:CPK) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Insider & Institutional Ownership

77.6% of UGI Corporation shares are owned by institutional investors. Comparatively, 61.3% of Chesapeake Utilities Corporation shares are owned by institutional investors. 2.2% of UGI Corporation shares are owned by company insiders. Comparatively, 5.4% of Chesapeake Utilities Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

UGI Corporation has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Chesapeake Utilities Corporation has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for UGI Corporation and Chesapeake Utilities Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UGI Corporation 1 1 1 0 2.00
Chesapeake Utilities Corporation 0 4 0 0 2.00

UGI Corporation currently has a consensus target price of $46.00, suggesting a potential downside of 1.50%. Chesapeake Utilities Corporation has a consensus target price of $69.00, suggesting a potential downside of 12.33%. Given UGI Corporation’s higher probable upside, equities research analysts plainly believe UGI Corporation is more favorable than Chesapeake Utilities Corporation.

Dividends

UGI Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Chesapeake Utilities Corporation pays an annual dividend of $1.30 per share and has a dividend yield of 1.7%. UGI Corporation pays out 45.9% of its earnings in the form of a dividend. Chesapeake Utilities Corporation pays out 50.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. UGI Corporation has increased its dividend for 31 consecutive years and Chesapeake Utilities Corporation has increased its dividend for 13 consecutive years. UGI Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares UGI Corporation and Chesapeake Utilities Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
UGI Corporation $5.98 billion 1.35 $1.35 billion $2.18 21.42
Chesapeake Utilities Corporation $560.47 million 2.29 $122.80 million $2.56 30.74

UGI Corporation has higher revenue and earnings than Chesapeake Utilities Corporation. UGI Corporation is trading at a lower price-to-earnings ratio than Chesapeake Utilities Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares UGI Corporation and Chesapeake Utilities Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UGI Corporation 6.48% 10.44% 3.54%
Chesapeake Utilities Corporation 7.40% 9.18% 3.41%

Summary

UGI Corporation beats Chesapeake Utilities Corporation on 11 of the 16 factors compared between the two stocks.

UGI Corporation Company Profile

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.

Chesapeake Utilities Corporation Company Profile

Chesapeake Utilities Corporation (Chesapeake) is an energy company. The Company operates through two segments: Regulated Energy and Unregulated Energy. The Company provides natural gas distribution and transmission; natural gas supply, gathering, processing and marketing; electric distribution and generation; propane distribution; propane and crude oil wholesale marketing; steam generation, and other energy-related services. The Regulated Energy segment includes the Company’s natural gas distribution, natural gas transmission and electric distribution operations. The Unregulated Energy segment includes its propane distribution, propane and crude oil wholesale marketing, natural gas marketing and unregulated natural gas supply, gathering and processing, electricity and steam generation and other unregulated energy-related services to customers.

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