Financial Comparison: UGI (UGI) versus ROTORK PLC/ADR (RTOXY)

UGI (NYSE:UGI) and ROTORK PLC/ADR (OTCMKTS:RTOXY) are both mid-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for UGI and ROTORK PLC/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UGI 1 3 1 0 2.00
ROTORK PLC/ADR 0 0 0 0 N/A

UGI currently has a consensus price target of $52.25, suggesting a potential downside of 9.05%. Given UGI’s higher possible upside, analysts plainly believe UGI is more favorable than ROTORK PLC/ADR.

Volatility & Risk

UGI has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, ROTORK PLC/ADR has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.

Earnings and Valuation

This table compares UGI and ROTORK PLC/ADR’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UGI $7.65 billion 1.31 $718.70 million $2.74 20.97
ROTORK PLC/ADR $827.31 million 3.39 $71.67 million $0.55 23.44

UGI has higher revenue and earnings than ROTORK PLC/ADR. UGI is trading at a lower price-to-earnings ratio than ROTORK PLC/ADR, indicating that it is currently the more affordable of the two stocks.

Dividends

UGI pays an annual dividend of $1.04 per share and has a dividend yield of 1.8%. ROTORK PLC/ADR pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. UGI pays out 38.0% of its earnings in the form of a dividend. ROTORK PLC/ADR pays out 36.4% 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. UGI has raised its dividend for 32 consecutive years. UGI is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares UGI and ROTORK PLC/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UGI 11.11% 12.12% 4.19%
ROTORK PLC/ADR N/A N/A N/A

Institutional and Insider Ownership

79.4% of UGI shares are held by institutional investors. 2.4% of UGI shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

UGI beats ROTORK PLC/ADR on 12 of the 16 factors compared between the two stocks.

About UGI

UGI Corporation distributes, stores, transports, and markets energy products and related services in the United States and internationally. The company operates through four segments: AmeriGas Propane, UGI International, Midstream & Marketing, and UGI Utilities. It distributes propane to approximately 1.7 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,900 propane distribution locations; and sells, installs, and services propane appliances, including heating systems and propane-powered generators. The company also distributes liquefied petroleum gases (LPG) to residential, commercial, industrial, agricultural, wholesale and automobile fuel customers; and provides logistics, storage, and other services to third-party LPG distributors. In addition, it engages in the retail sale of natural gas, liquid fuels, and electricity to approximately 12,500 residential, commercial, and industrial customers at approximately 35,500 locations. Further, the company distributes natural gas to approximately 642,000 customers in the portions of 44 eastern and central Pennsylvania counties through its distribution system of 12,300 miles of gas mains; and supplies electricity to approximately 62,000 customers in northeastern Pennsylvania through 2,200 miles of lines and 13 substations. Additionally, it operates electric generation facilities, which include coal-fired, landfill gas-fueled, solar-powered, and natural gas-fueled facilities; a natural gas liquefaction, storage, and vaporization facility; propane storage and propane-air mixing stations; and rail transshipment terminals. It also manages natural gas pipeline and storage contracts; develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities; and offers heating, ventilation, air conditioning, refrigeration, mechanical, and electrical contracting services. UGI Corporation was founded in 1882 and is based in King of Prussia, Pennsylvania.

About ROTORK PLC/ADR

Rotork plc designs, manufactures, and markets actuators and flow control products worldwide. It operates through four segments: Controls, Fluid Systems, Gears, and Instruments. The company offers electric actuators and control systems, including intelligent multi-turn and part-turn valve actuators, part-turn/rotary and linear control valve actuators, heavy-duty part-turn/rotary and linear valve actuators, small part-turn/rotary valve actuators, and network control systems, as well as explosion proof actuators, sensors, switches, and controls. It also provides pneumatic and hydraulic rotary and linear, electro-hydraulic, subsea, and vane-type pneumatic valve actuators, as well as smart valve monitoring and control systems. In addition, the company offers manual and motorized multi-turn gearboxes and quarter-turn gearboxes; and worm gear quarter-turn, subsea quarter-turn, and override quarter-turn gear operators, as well as mounting brackets, extension shafts, pedestals, and accessories for the valve and actuator industry. Further, it provides instrumentation and control products, such as pneumatic pressure regulators, electro-pneumatic transducers, pneumatic air volume boosters, and pneumatic relays. Additionally, the company offers pneumatic valves and manifolds, which include air preparation, poppet valves, spool valves, ancillaries, direct acting solenoid valves, slide valves, and impact pneumatic manifolds. It also provides emergency and planned service, including installation, commissioning, and upgrading control systems, as well as troubleshooting and repair of damaged or deteriorating assets; and actuator overhauls, shutdown outages, preventative maintenance, technical support, and training services. It primarily serves power generation, oil and gas, water and sewage, marine, mining, and other industries. The company was incorporated in 1957 and is headquartered in Bath, the United Kingdom.

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