ONE Gas, Inc. (OGS) vs UGI Corporation (UGI)

ONE Gas, Inc. and UGI Corporation are both Utilities Regulated Gas companies. UGI Corporation is the larger, with a market value of $7.8B against $4.5B — 1.7× the size. UGI Corporation trades at the lower P/E: 11.7× against 15.4×. UGI Corporation grew revenue faster over the last twelve months: −0.49% against −0.78%. ONE Gas, Inc. has the higher net margin (12.5% vs 9.20%) and the lower return on invested capital (4.87% vs 6.28%). Both pay a dividend; UGI Corporation yields more (6.49% vs 4.31%). Across the 22 metrics below, UGI Corporation leads on 14 and ONE Gas, Inc. on 8.

Valuation

Metric OGS UGI Utilities Regulated Gas median
P/E 15.41 11.70 15.65
P/S 1.96 1.07 2.04
P/B 1.28 1.50 1.50
Price to free cash flow n/m 19.50 —
EV/EBITDA 9.04 8.25 11.49
EV/Sales 3.08 1.97 3.54
Earnings yield 6.49% 8.55% 6.39%
Free cash flow yield (3.82%) 5.13% (5.71%)

Profitability

Metric OGS UGI Utilities Regulated Gas median
Gross margin 63.13% 51.34% 63.14%
Operating margin 20.65% 16.19% 21.47%
Net margin 12.47% 9.20% 13.00%
Free cash flow margin (7.48%) 5.51% (13.27%)
Return on equity 8.58% 13.28% 9.47%
Return on assets 3.36% 4.33% 3.80%
Return on invested capital 4.87% 6.28% 4.29%

Growth

Metric OGS UGI Utilities Regulated Gas median
Revenue growth (TTM) (0.78%) (0.49%) 6.36%
EPS growth (last fiscal year) 11.76% 147.20% —
Revenue growth, 5-year CAGR 9.67% 2.13% 6.36%
Net income growth, 5-year CAGR 6.11% 4.97% 8.10%

Health

Metric OGS UGI Utilities Regulated Gas median
Debt to equity 0.74 1.35 1.22
Current ratio 0.48 1.44 0.78
Net debt to EBITDA 3.36 4.06 4.68

Dividend

Metric OGS UGI Utilities Regulated Gas median
Dividend yield 4.31% 6.49% 4.31%
Payout ratio 0.62 0.28 0.62

Size

Metric OGS UGI Utilities Regulated Gas median
Market cap 4.52b 7.80b 4.52b

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