Archaea Energy (NYSE:LFG) versus UGI (NYSE:UGI) Head-To-Head Review

Archaea Energy (NYSE:LFGGet Rating) and UGI (NYSE:UGIGet Rating) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Profitability

This table compares Archaea Energy and UGI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archaea Energy N/A N/A -9.66%
UGI 16.65% 10.80% 3.49%

Earnings & Valuation

This table compares Archaea Energy and UGI’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Archaea Energy $77.13 million 30.38 -$23.90 million N/A N/A
UGI $7.45 billion 1.06 $1.47 billion $7.00 5.38

UGI has higher revenue and earnings than Archaea Energy.

Analyst Ratings

This is a summary of current recommendations and price targets for Archaea Energy and UGI, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archaea Energy 0 0 5 0 3.00
UGI 0 3 0 0 2.00

Archaea Energy currently has a consensus target price of $28.80, suggesting a potential upside of 47.09%. UGI has a consensus target price of $41.33, suggesting a potential upside of 9.78%. Given Archaea Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Archaea Energy is more favorable than UGI.

Institutional & Insider Ownership

55.9% of Archaea Energy shares are held by institutional investors. Comparatively, 79.9% of UGI shares are held by institutional investors. 36.7% of Archaea Energy shares are held by company insiders. Comparatively, 2.0% of UGI shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Archaea Energy has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, UGI has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Summary

UGI beats Archaea Energy on 7 of the 12 factors compared between the two stocks.

About Archaea Energy (Get Rating)

Archaea Energy Inc. operates as a renewable natural gas (RNG) and renewable electricity producer in the United States. It owns and operates a diversified portfolio of 23 landfill gas recovery and processing projects across 12 states, including 13 projects that collectively generate approximately 177.3 MW of electric capacity and 10 projects that have capacity to produce approximately 27,480 million of British thermal units per day of pipeline-quality RNG. The company was founded in 2018 and is based in Houston, Texas.

About UGI (Get Rating)

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 1.4 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,600 propane distribution location. 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 12,600 residential, commercial, and industrial customers at 42,400 locations. Further, the company distributes natural gas to approximately 672,000 customers in eastern and central Pennsylvania counties through its distribution system of approximately 12,400 miles of gas mains; and supplies electricity to approximately 62,500 customers in northeastern Pennsylvania through 2,600 miles of lines and 14 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. UGI Corporation was incorporated in 1991 and is based in King of Prussia, Pennsylvania.

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