Sunoco LP (SUN) vs Ultrapar Participacoes S.A. (UGP)

Sunoco LP and Ultrapar Participacoes S.A. are both Oil & Gas Refining & Marketing companies. Sunoco LP is the larger, with a market value of $15.5B against $8.0B — 1.9× the size. Ultrapar Participacoes S.A. trades at the lower P/E: 11.3× against 16.5×. Sunoco LP grew revenue faster over the last twelve months: 83.3% against 20.2%. Ultrapar Participacoes S.A. has the higher net margin (2.29% vs 1.57%) and the higher return on invested capital (15.3% vs 5.64%). Both pay a dividend; Sunoco LP yields more (5.56% vs 2.28%). Across the 23 metrics below, Ultrapar Participacoes S.A. leads on 17 and Sunoco LP on 6.

Valuation

Metric SUN UGP Oil & Gas Refining & Marketing median
P/E 16.50 11.25 15.04
P/S 0.26 0.26 0.41
P/B 1.50 1.91 1.87
Price to free cash flow 6.08 5.17 8.78
EV/EBITDA 7.94 5.08 7.94
EV/Sales 0.58 0.33 0.59
Earnings yield 6.06% 8.89% 6.15%
Free cash flow yield 16.43% 19.34% 10.47%

Profitability

Metric SUN UGP Oil & Gas Refining & Marketing median
Gross margin 11.93% 8.44% 12.22%
Operating margin 4.76% 4.95% 5.35%
Net margin 1.57% 2.29% 2.08%
Free cash flow margin 4.25% 5.52% 4.25%
Return on equity 11.39% 18.40% 11.39%
Return on assets 2.81% 7.25% 5.22%
Return on invested capital 5.64% 15.25% 11.54%

Growth

Metric SUN UGP Oil & Gas Refining & Marketing median
Revenue growth (TTM) 83.34% 20.23% 13.37%
EPS growth (last fiscal year) (62.00%) (25.64%) —
Revenue growth, 5-year CAGR 18.67% 10.10% 12.77%
Net income growth, 5-year CAGR 18.32% 20.45% 0.00%

Health

Metric SUN UGP Oil & Gas Refining & Marketing median
Debt to equity 1.59 0.96 0.44
Current ratio 1.29 1.64 1.32
Net debt to EBITDA 7.57 2.02 2.07

Dividend

Metric SUN UGP Oil & Gas Refining & Marketing median
Dividend yield 5.56% 2.28% 3.64%
Payout ratio — 0.07 0.14

Size

Metric SUN UGP Oil & Gas Refining & Marketing median
Market cap 15.53b 7.99b 4.12b

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