Ultrapar Participacoes S.A. (UGP) vs World Kinect Corporation (WKC)

Ultrapar Participacoes S.A. and World Kinect Corporation are both Oil & Gas Refining & Marketing companies. Ultrapar Participacoes S.A. is the larger, with a market value of $6.2B against $1.9B — 3.3× the size. World Kinect Corporation has negative trailing earnings, so its P/E is not meaningful; Ultrapar Participacoes S.A. trades at 9.0×. World Kinect Corporation grew revenue faster over the last twelve months: 21.1% against 20.2%. Ultrapar Participacoes S.A. has the higher net margin (2.29% vs −0.37%) and the higher return on invested capital (15.3% vs −1.54%). Both pay a dividend; Ultrapar Participacoes S.A. yields more (6.60% vs 2.31%). Across the 22 metrics below, Ultrapar Participacoes S.A. leads on 15 and World Kinect Corporation on 7.

Valuation

Metric UGP WKC Oil & Gas Refining & Marketing median
P/E 9.03 n/m 11.95
P/S 0.21 0.04 0.36
P/B 1.54 1.48 1.67
Price to free cash flow 4.15 23.26 8.06
EV/EBITDA 4.28 8.75 6.84
EV/Sales 0.28 0.05 0.55
Earnings yield 11.07% (7.85%) 6.59%
Free cash flow yield 24.10% 4.30% 11.61%

Profitability

Metric UGP WKC Oil & Gas Refining & Marketing median
Gross margin 8.44% 2.54% 14.49%
Operating margin 4.95% (0.10%) 7.14%
Net margin 2.29% (0.37%) 2.29%
Free cash flow margin 5.52% 0.18% 4.55%
Return on equity 18.40% (11.46%) 14.90%
Return on assets 7.25% (2.55%) 5.52%
Return on invested capital 15.25% (1.54%) 13.76%

Growth

Metric UGP WKC Oil & Gas Refining & Marketing median
Revenue growth (TTM) 20.23% 21.06% 19.06%
EPS growth (last fiscal year) 2.90% (1,072.57%) 37.92%
Revenue growth, 5-year CAGR 10.10% 12.64% 13.17%
Net income growth, 5-year CAGR 20.45% 0.00% 0.00%

Health

Metric UGP WKC Oil & Gas Refining & Marketing median
Debt to equity 0.96 0.54 0.48
Current ratio 1.64 1.04 1.32
Net debt to EBITDA 2.02 1.81 2.07

Dividend

Metric UGP WKC Oil & Gas Refining & Marketing median
Dividend yield 6.60% 2.31% 2.31%
Payout ratio 0.62 — 0.35

Size

Metric UGP WKC Oil & Gas Refining & Marketing median
Market cap 6.22b 1.91b 4.16b

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