Scorpio Tankers (NYSE:STNG – Get Free Report) and Ultrapar Participacoes (NYSE:UGP – Get Free Report) are both mid-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Profitability
This table compares Scorpio Tankers and Ultrapar Participacoes’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Scorpio Tankers | 67.16% | 16.43% | 13.14% |
| Ultrapar Participacoes | 2.28% | 18.84% | 7.17% |
Valuation and Earnings
This table compares Scorpio Tankers and Ultrapar Participacoes”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Scorpio Tankers | $938.22 million | 4.20 | $344.29 million | $16.01 | 4.89 |
| Ultrapar Participacoes | $25.51 billion | 0.28 | $439.48 million | $0.61 | 10.59 |
Ultrapar Participacoes has higher revenue and earnings than Scorpio Tankers. Scorpio Tankers is trading at a lower price-to-earnings ratio than Ultrapar Participacoes, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
54.6% of Scorpio Tankers shares are owned by institutional investors. Comparatively, 3.6% of Ultrapar Participacoes shares are owned by institutional investors. 7.3% of Scorpio Tankers shares are owned by insiders. Comparatively, 1.8% of Ultrapar Participacoes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.3%. Ultrapar Participacoes pays an annual dividend of $0.31 per share and has a dividend yield of 4.8%. Scorpio Tankers pays out 11.2% of its earnings in the form of a dividend. Ultrapar Participacoes 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. Scorpio Tankers has increased its dividend for 2 consecutive years.
Analyst Ratings
This is a summary of current ratings and price targets for Scorpio Tankers and Ultrapar Participacoes, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Scorpio Tankers | 1 | 5 | 5 | 0 | 2.36 |
| Ultrapar Participacoes | 0 | 3 | 3 | 1 | 2.71 |
Scorpio Tankers presently has a consensus target price of $90.14, suggesting a potential upside of 15.24%. Ultrapar Participacoes has a consensus target price of $6.40, suggesting a potential downside of 0.93%. Given Scorpio Tankers’ higher possible upside, equities analysts plainly believe Scorpio Tankers is more favorable than Ultrapar Participacoes.
Volatility and Risk
Scorpio Tankers has a beta of -0.22, meaning that its stock price is 122% less volatile than the S&P 500. Comparatively, Ultrapar Participacoes has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.
Summary
Scorpio Tankers beats Ultrapar Participacoes on 10 of the 18 factors compared between the two stocks.
About Scorpio Tankers
Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.
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.
Receive News & Ratings for Scorpio Tankers Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Scorpio Tankers and related companies with MarketBeat.com's FREE daily email newsletter.
