UGI (NYSE:UGI – Get Free Report) and APA Group (OTCMKTS:APAJF – Get Free Report) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.
Institutional and Insider Ownership
82.3% of UGI shares are held by institutional investors. Comparatively, 20.7% of APA Group shares are held by institutional investors. 0.6% of UGI shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for UGI and APA Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UGI | 1 | 2 | 3 | 0 | 2.33 |
| APA Group | 0 | 1 | 0 | 0 | 2.00 |
Earnings & Valuation
This table compares UGI and APA Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UGI | $7.29 billion | 1.13 | $678.00 million | $2.99 | 12.85 |
| APA Group | N/A | N/A | N/A | $0.39 | 20.37 |
UGI has higher revenue and earnings than APA Group. UGI is trading at a lower price-to-earnings ratio than APA Group, indicating that it is currently the more affordable of the two stocks.
Dividends
UGI pays an annual dividend of $1.50 per share and has a dividend yield of 3.9%. APA Group pays an annual dividend of $0.28 per share and has a dividend yield of 3.6%. UGI pays out 50.2% of its earnings in the form of a dividend. APA Group pays out 72.4% 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. UGI has raised its dividend for 37 consecutive years. UGI is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares UGI and APA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| UGI | 9.20% | 12.80% | 4.15% |
| APA Group | N/A | N/A | N/A |
Summary
UGI beats APA Group on 12 of the 14 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 APA Group
APA Group engages in the energy infrastructure business in Australia. The company operates through Energy Infrastructure, Asset Management, and Energy Investments segments. It operates gas transmission pipelines and interconnected grids, gas-fired power stations, electricity transmission interconnectors, solar and wind farms, and battery energy storage systems, as well as gas storage, processing, and compression facilities. The company also has interests in approximately 15,000 kilometers of gas transmission pipelines; approximately 29,500 kilometers of gas mains and pipelines; and 1.5 million gas consumer connections. It also provides asset management and operating services to its energy investments and third parties; and invests in energy infrastructure. The company is headquartered in Sydney, Australia.
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