Marathon Petroleum Corporation (MPC) vs Ultrapar Participacoes S.A. (UGP)

Marathon Petroleum Corporation and Ultrapar Participacoes S.A. are both Oil & Gas Refining & Marketing companies. Marathon Petroleum Corporation is the larger, with a market value of $108.5B against $8.0B — 13.6× the size. Ultrapar Participacoes S.A. trades at the lower P/E: 11.3× against 13.5×. Ultrapar Participacoes S.A. grew revenue faster over the last twelve months: 20.2% against 15.0%. Marathon Petroleum Corporation has the higher net margin (5.57% vs 2.29%) and the higher return on invested capital (17.4% vs 15.3%). Both pay a dividend; Ultrapar Participacoes S.A. yields more (2.28% vs 2.00%). Across the 23 metrics below, Ultrapar Participacoes S.A. leads on 14 and Marathon Petroleum Corporation on 9.

Valuation

Metric MPC UGP Oil & Gas Refining & Marketing median
P/E 13.51 11.25 15.04
P/S 0.74 0.26 0.41
P/B 4.42 1.91 1.87
Price to free cash flow 8.19 5.17 8.78
EV/EBITDA 7.94 5.08 7.94
EV/Sales 0.90 0.33 0.59
Earnings yield 7.40% 8.89% 6.15%
Free cash flow yield 12.22% 19.34% 10.47%

Profitability

Metric MPC UGP Oil & Gas Refining & Marketing median
Gross margin 12.50% 8.44% 12.22%
Operating margin 9.20% 4.95% 5.35%
Net margin 5.57% 2.29% 2.08%
Free cash flow margin 9.05% 5.52% 4.25%
Return on equity 34.93% 18.40% 11.39%
Return on assets 9.90% 7.25% 5.22%
Return on invested capital 17.40% 15.25% 11.54%

Growth

Metric MPC UGP Oil & Gas Refining & Marketing median
Revenue growth (TTM) 14.99% 20.23% 13.37%
EPS growth (last fiscal year) 31.15% (25.64%) —
Revenue growth, 5-year CAGR 13.72% 10.10% 12.77%
Net income growth, 5-year CAGR 0.00% 20.45% 0.00%

Health

Metric MPC UGP Oil & Gas Refining & Marketing median
Debt to equity 1.28 0.96 0.44
Current ratio 1.25 1.64 1.32
Net debt to EBITDA 2.52 2.02 2.07

Dividend

Metric MPC UGP Oil & Gas Refining & Marketing median
Dividend yield 2.00% 2.28% 3.64%
Payout ratio 0.10 0.07 0.14

Size

Metric MPC UGP Oil & Gas Refining & Marketing median
Market cap 108.48b 7.99b 4.12b

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