Ultrapar Participações (NYSE:UGP) and Cheniere Energy (NYSE:LNG) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Volatility and Risk

Ultrapar Participações has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Cheniere Energy has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Valuation and Earnings

This table compares Ultrapar Participações and Cheniere Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ultrapar Participações $21.70 billion 0.17 $94.65 million $0.15 22.00
Cheniere Energy $9.73 billion 1.30 $648.00 million ($0.57) -87.79

Cheniere Energy has lower revenue, but higher earnings than Ultrapar Participações. Cheniere Energy is trading at a lower price-to-earnings ratio than Ultrapar Participações, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ultrapar Participações and Cheniere Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultrapar Participações 0 1 7 0 2.88
Cheniere Energy 0 0 0 0 N/A

Ultrapar Participações presently has a consensus price target of $5.67, suggesting a potential upside of 71.72%. Given Ultrapar Participações’ higher possible upside, analysts plainly believe Ultrapar Participações is more favorable than Cheniere Energy.

Profitability

This table compares Ultrapar Participações and Cheniere Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultrapar Participações 0.29% 2.52% 0.76%
Cheniere Energy 11.60% 16.85% 1.15%

Institutional & Insider Ownership

3.2% of Ultrapar Participações shares are owned by institutional investors. Comparatively, 88.6% of Cheniere Energy shares are owned by institutional investors. 0.8% of Cheniere Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Cheniere Energy beats Ultrapar Participações on 8 of the 13 factors compared between the two stocks.

About Ultrapar Participações

Ultrapar Participações S.A. engages in the gas distribution, fuel distribution, chemicals, storage, and drugstores businesses primarily in Brazil, Mexico, Uruguay, Venezuela, other Latin American countries, the United States, Canada, the Far East, Europe, and internationally. Its Gas Distribution segment distributes liquefied petroleum gas to residential, commercial, and industrial consumers, as well as independent dealers primarily in the South, Southeast, and Northeast regions of Brazil. The company's Fuel Distribution segment distributes and markets gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants and related activities through a network of 7,090 Ipiranga service stations. Its 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 company's Storage segment operates liquid bulk terminals primarily in the Southeast and Northeast regions of Brazil. Its Drugstores segment trades in pharmaceutical, hygiene, and beauty products through its own drugstore chain in the North, Northeast, and Southeast regions of Brazil. The company also operates Abastece Aí, a digital payments app for the purchase of fuels, and other products and services. Ultrapar Participações S.A. was founded in 1937 and is headquartered in São Paulo, Brazil.

About Cheniere Energy

Cheniere Energy, Inc., an energy infrastructure company, engages in the liquefied natural gas (LNG) related businesses in the United States. It owns and operates Sabine Pass LNG terminal in Cameron Parish, Louisiana; and Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns Creole Trail pipeline, a 94-mile pipeline interconnecting the Sabine Pass LNG terminal with various interstate pipelines; and operates Corpus Christi pipeline, a 23-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines. In addition, it is involved in the LNG and natural gas marketing business. The company was founded in 1983 and is headquartered in Houston, Texas.

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