Analyzing UGI (UGI) and Clean Energy Fuels (CLNE)

UGI (NYSE: UGI) and Clean Energy Fuels (NASDAQ:CLNE) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

78.2% of UGI shares are owned by institutional investors. Comparatively, 33.5% of Clean Energy Fuels shares are owned by institutional investors. 2.4% of UGI shares are owned by company insiders. Comparatively, 26.7% of Clean Energy Fuels shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

UGI pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Clean Energy Fuels does not pay a dividend. UGI pays out 43.7% of its earnings in the form of a dividend. UGI has raised its dividend for 32 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for UGI and Clean Energy Fuels, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UGI 1 2 2 0 2.20
Clean Energy Fuels 0 0 0 0 N/A

UGI presently has a consensus target price of $47.00, indicating a potential upside of 1.45%. Given UGI’s higher possible upside, analysts plainly believe UGI is more favorable than Clean Energy Fuels.

Earnings & Valuation

This table compares UGI and Clean Energy Fuels’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UGI $6.12 billion 1.31 $436.60 million $2.29 20.23
Clean Energy Fuels $341.60 million 0.71 -$79.23 million ($0.53) -3.00

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

Profitability

This table compares UGI and Clean Energy Fuels’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UGI 8.71% 10.88% 3.65%
Clean Energy Fuels -23.20% -15.55% -9.41%

Risk and Volatility

UGI has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Clean Energy Fuels has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Summary

UGI beats Clean Energy Fuels on 12 of the 15 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. It distributes propane to approximately 1.9 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers in 50 states through 1,900 propane distribution locations; and sells, installs, and services propane appliances, including heating systems. The company also distributes liquid petroleum gas (LPG) to residential, commercial, industrial, agricultural, resale, and automobile fuel customers for heating, cooking, motor fuel, leisure, construction work, manufacturing, crop drying, power generation, aerosol propellant, and irrigation activities; and provides logistic, 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 14,000 residential, commercial, and industrial customers at approximately 37,000 locations. Further, the company distributes natural gas to approximately 635,000 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 Clean Energy Fuels

Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The company supplies renewable natural gas (RNG), compressed natural gas (CNG), and liquefied natural gas (LNG) for light, medium, and heavy-duty vehicles; and provides operation and maintenance services for vehicle fleet customer stations. It also designs, builds, operates, and maintains fueling stations; and sells and services natural gas fueling compressors and other equipment used in CNG and LNG stations. In addition, the company provides assessment, design, and modification solutions to operators with code-compliant service and maintenance facilities for natural gas vehicle fleets; transports and sells CNG and LNG through virtual natural gas pipelines and interconnects; and procures and sells RNG. Further, it sells tradable credits comprising RNG and conventional natural gas as a vehicle fuel, such as Renewable Identification Numbers and Low Carbon Fuel Standards credits; and helps customers in acquiring and financing natural gas vehicles, as well as obtaining federal, state, and local credits, grants, and incentives. The company serves heavy-duty trucking, airport, refuse, and public transit markets; and industrial and institutional energy users, as well as government fleets. As of December 31, 2017 it served approximately 1,000 fleet customers operating approximately 46,000 natural gas vehicles; and owned, operated, or supplied approximately 530 natural gas fueling stations in 42 states in the United States and in 4 provinces in Canada. Clean Energy Fuels Corp. was incorporated in 2001 and is headquartered in Newport Beach, California.

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