Baytex Energy (NYSE:BTE – Get Free Report) and Ultrapar Participacoes (NYSE:UGP – Get Free Report) are both mid-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Valuation and Earnings
This table compares Baytex Energy and Ultrapar Participacoes”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baytex Energy | $1.91 billion | 1.73 | -$432.12 million | ($0.67) | -7.14 |
| Ultrapar Participacoes | $153.26 billion | 0.04 | $439.48 million | $0.61 | 9.33 |
Ultrapar Participacoes has higher revenue and earnings than Baytex Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Ultrapar Participacoes, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Baytex Energy and Ultrapar Participacoes’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baytex Energy | -26.43% | -7.77% | -4.86% |
| Ultrapar Participacoes | 2.28% | 18.84% | 7.17% |
Dividends
Baytex Energy pays an annual dividend of $0.06 per share and has a dividend yield of 1.3%. Ultrapar Participacoes pays an annual dividend of $0.31 per share and has a dividend yield of 5.4%. Baytex Energy pays out -9.0% of its earnings in the form of a dividend. Ultrapar Participacoes pays out 50.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional and Insider Ownership
46.2% of Baytex Energy shares are held by institutional investors. Comparatively, 3.6% of Ultrapar Participacoes shares are held by institutional investors. 0.8% of Baytex Energy shares are held by insiders. Comparatively, 1.8% of Ultrapar Participacoes shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Baytex Energy has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Ultrapar Participacoes has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Baytex Energy and Ultrapar Participacoes, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baytex Energy | 0 | 5 | 3 | 3 | 2.82 |
| Ultrapar Participacoes | 0 | 5 | 3 | 1 | 2.56 |
Ultrapar Participacoes has a consensus target price of $6.54, suggesting a potential upside of 14.94%. Given Ultrapar Participacoes’ higher probable upside, analysts clearly believe Ultrapar Participacoes is more favorable than Baytex Energy.
Summary
Ultrapar Participacoes beats Baytex Energy on 11 of the 16 factors compared between the two stocks.
About Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
About Ultrapar Participacoes
Ultrapar Participações S.A., through its subsidiaries, operates in the energy and infrastructure business in Brazil. The company distributes liquefied petroleum gas to residential, commercial, and industrial consumers, in addition to renewable electricity and compressed natural gas. It also operates in the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants; and holds AmPm convenience stores and provides JetOil lubricant services. In addition, the company operates liquid bulk storage terminals. Further, it offers digital payments services, combining the abastece aí app and the loyalty program Km de Vantagens. It also exports its products and services to customers in Europe, Singapore, the United States, Canada, other Latin American countries, and internationally. The company was founded in 1937 and is headquartered in São Paulo, Brazil.
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