Ultrapar Participacoes (NYSE:UGP – Get Free Report) and Baytex Energy (NYSE:BTE – Get Free Report) are both mid-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Profitability
This table compares Ultrapar Participacoes and Baytex Energy’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% |
| Baytex Energy | -26.43% | -7.77% | -4.86% |
Dividends
Ultrapar Participacoes pays an annual dividend of $0.31 per share and has a dividend yield of 5.5%. Baytex Energy pays an annual dividend of $0.06 per share and has a dividend yield of 1.4%. Ultrapar Participacoes pays out 50.8% of its earnings in the form of a dividend. Baytex Energy pays out -9.0% 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.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Ultrapar Participacoes and Baytex Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ultrapar Participacoes | 0 | 5 | 3 | 1 | 2.56 |
| Baytex Energy | 0 | 5 | 3 | 3 | 2.82 |
Ultrapar Participacoes currently has a consensus price target of $6.54, indicating a potential upside of 16.68%. Given Ultrapar Participacoes’ higher possible upside, equities research analysts clearly believe Ultrapar Participacoes is more favorable than Baytex Energy.
Earnings & Valuation
This table compares Ultrapar Participacoes and Baytex Energy”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 | 0.25 | $439.48 million | $0.61 | 9.19 |
| Baytex Energy | $2.56 billion | 1.17 | -$432.12 million | ($0.67) | -6.57 |
Ultrapar Participacoes has higher revenue and earnings than Baytex Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Ultrapar Participacoes, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Ultrapar Participacoes has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.
Institutional & Insider Ownership
3.6% of Ultrapar Participacoes shares are held by institutional investors. Comparatively, 46.1% of Baytex Energy shares are held by institutional investors. 1.8% of Ultrapar Participacoes shares are held by company insiders. Comparatively, 0.8% of Baytex Energy shares are held by company 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
Ultrapar Participacoes beats Baytex Energy on 11 of the 16 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 Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
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