Star Group (SGU) & Its Competitors Critical Review

Star Group (NYSE:SGU – Get Free Report) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its peers? We will compare Star Group to related businesses based on the strength of its analyst recommendations, dividends, earnings, institutional ownership, risk, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and target prices for Star Group and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Star Group 0 1 0 0 2.00
Star Group Competitors 5968 26957 40797 2410 2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 26.08%. Given Star Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe Star Group has less favorable growth aspects than its peers.

Institutional & Insider Ownership

40.4% of Star Group shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 20.4% of Star Group shares are held by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Star Group has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Star Group’s peers have a beta of -3.72, suggesting that their average stock price is 472% less volatile than the S&P 500.

Dividends

Star Group pays an annual dividend of $0.79 per share and has a dividend yield of 6.0%. Star Group pays out 42.2% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.9% and pay out -122.4% of their earnings in the form of a dividend. Star Group has increased its dividend for 13 consecutive years. Star Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Star Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Star Group 4.57% 24.43% 8.39%
Star Group Competitors -470.80% 19.34% 6.40%

Valuation & Earnings

This table compares Star Group and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Star Group $1.78 billion $73.50 million 6.98
Star Group Competitors $14.79 billion $5.51 billion -0.36

Star Group’s peers have higher revenue and earnings than Star Group. Star Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Star Group peers beat Star Group on 8 of the 15 factors compared.

About Star Group

(Get Free Report)

Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintain, and repairs heating and air conditioning equipment. As of September 30, 2023, the company served approximately 402,200 full service residential and commercial home heating oil and propane customers and 52,400 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,600 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.

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