UGI (NYSE:UGI – Get Free Report) and Italgas (OTCMKTS:ITGGF – Get Free Report) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Profitability
This table compares UGI and Italgas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| UGI | 9.20% | 12.80% | 4.15% |
| Italgas | N/A | N/A | N/A |
Valuation and Earnings
This table compares UGI and Italgas”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UGI | $7.30 billion | 1.10 | $678.00 million | $2.99 | 12.57 |
| Italgas | N/A | N/A | N/A | N/A | N/A |
UGI has higher revenue and earnings than Italgas.
Institutional and Insider Ownership
82.3% of UGI shares are owned by institutional investors. 0.6% of UGI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for UGI and Italgas, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UGI | 1 | 2 | 3 | 0 | 2.33 |
| Italgas | 0 | 1 | 3 | 0 | 2.75 |
UGI presently has a consensus price target of $42.00, indicating a potential upside of 11.76%. Given UGI’s higher probable upside, equities research analysts plainly believe UGI is more favorable than Italgas.
Summary
UGI beats Italgas on 7 of the 8 factors compared between the two stocks.
About UGI
UGI Corporation, together with its subsidiaries, distributes, stores, transports, and markets energy products and related services in the United States and internationally. The company operates through four segments: AmeriGas Propane, UGI International, Midstream & Marketing, and UGI Utilities. It distributes propane to approximately 1.3 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,400 propane distribution locations. The company distributes liquefied petroleum gases (LPG) to residential, commercial, industrial, agricultural, wholesale and automobile fuel customers; and provides logistics, storage, and other services to third-party LPG distributors. In addition, it engages in the retail sale of natural gas, liquid fuels, and electricity to approximately 12,400 residential, commercial, and industrial customers at 42,000 locations. Further, the company distributes natural gas to approximately 677,000 customers in eastern and central Pennsylvania counties through its distribution system of approximately 12,500 miles of gas mains; and supplies electricity to approximately 62,600 customers in northeastern Pennsylvania through 2,560 miles of lines and 14 substations. Additionally, it operates electric generation facilities, which include coal-fired, landfill gas-fueled, solar-powered, and natural gas-fueled facilities; a natural gas liquefaction, storage, and vaporization facility; propane storage and propane-air mixing stations; and rail transshipment terminals. It manages natural gas pipeline and storage contracts; develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities. UGI Corporation was incorporated in 1882 and is headquartered in King of Prussia, Pennsylvania.
About Italgas
Italgas S.p.A., together with its subsidiaries, engages in the distribution of natural gas in Italy. It is involved in the transportation of gas to households, enterprises, etc. The company operated a distribution network of 81,309 kilometers. It also engages in metering activities; and distributes and sells water. Italgas S.p.A. was founded in 1837 and is based in Milan, Italy.
Receive News & Ratings for UGI Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UGI and related companies with MarketBeat.com's FREE daily email newsletter.
