Ultrapar Participações (NYSE:UGP) vs. Cheniere Energy Partners (NYSE:CQP) Financial Comparison

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

Dividends

Ultrapar Participações pays an annual dividend of $0.13 per share and has a dividend yield of 4.6%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.0%. Ultrapar Participações pays out 33.3% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 72.8% 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.

Analyst Ratings

This is a summary of recent ratings and price targets for Ultrapar Participações and Cheniere Energy Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultrapar Participações	0	2	4	1	2.86
Cheniere Energy Partners	4	0	0	0	1.00

Ultrapar Participações presently has a consensus target price of $3.20, suggesting a potential upside of 14.08%. Cheniere Energy Partners has a consensus target price of $51.50, suggesting a potential downside of 16.44%. Given Ultrapar Participações’ stronger consensus rating and higher possible upside, analysts clearly believe Ultrapar Participações is more favorable than Cheniere Energy Partners.

Risk and Volatility

Ultrapar Participações has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Institutional & Insider Ownership

3.6% of Ultrapar Participações shares are held by institutional investors. Comparatively, 46.5% of Cheniere Energy Partners shares are held by institutional investors. 1.8% of Ultrapar Participações shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ultrapar Participações	2.00%	18.03%	6.93%
Cheniere Energy Partners	28.84%	-325.95%	13.71%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ultrapar Participações	$133.50 billion	0.02	$488.69 million	$0.39	7.19
Cheniere Energy Partners	$8.70 billion	3.43	$4.25 billion	$4.26	14.47

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

Summary

Ultrapar Participações beats Cheniere Energy Partners on 9 of the 17 factors compared between the two stocks.

About Ultrapar Participações

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 Cheniere Energy Partners

Cheniere Energy Partners, L.P., through its subsidiaries, provides liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies worldwide. The company owns and operates natural gas liquefaction and export facility at the Sabine Pass LNG Terminal located in Cameron Parish, Louisiana. It also owns a natural gas supply pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. The company was founded in 2003 and is headquartered in Houston, Texas. Cheniere Energy Partners, L.P. is a subsidiary of Cheniere Energy, Inc.