Snam (OTCMKTS:SNMRY) and UGI (NYSE:UGI) Head-To-Head Review

UGI (NYSE:UGIGet Free Report) and Snam (OTCMKTS:SNMRYGet Free Report) are both utilities 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 & Earnings

This table compares UGI and Snam’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UGI $8.93 billion 0.56 -$1.50 billion ($2.20) -10.92
Snam N/A N/A N/A $0.65 14.30

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

Institutional and Insider Ownership

81.5% of UGI shares are held by institutional investors. Comparatively, 0.0% of Snam shares are held by institutional investors. 0.4% of UGI 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.

Analyst Recommendations

This is a breakdown of current recommendations for UGI and Snam, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UGI 0 2 0 0 2.00
Snam 0 1 1 0 2.50

UGI currently has a consensus target price of $30.33, suggesting a potential upside of 26.26%. Given UGI’s higher probable upside, research analysts clearly believe UGI is more favorable than Snam.

Profitability

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

Net Margins Return on Equity Return on Assets
UGI -5.48% 14.09% 3.98%
Snam N/A N/A N/A

Dividends

UGI pays an annual dividend of $1.50 per share and has a dividend yield of 6.2%. Snam pays an annual dividend of $0.31 per share and has a dividend yield of 3.3%. UGI pays out -68.2% of its earnings in the form of a dividend. Snam pays out 47.4% 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 36 consecutive years. UGI is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

UGI beats Snam on 9 of the 14 factors compared between the two stocks.

About UGI

(Get Free Report)

UGI Corporation, together with its subsidiaries, 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 1.3 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,400 propane distribution locations. The company 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 12,400 residential, commercial, and industrial customers at 42,000 locations. Further, the company distributes natural gas to approximately 677,000 customers in eastern and central Pennsylvania counties through its distribution system of approximately 12,500 miles of gas mains; and supplies electricity to approximately 62,600 customers in northeastern Pennsylvania through 2,560 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 manages natural gas pipeline and storage contracts; develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities. UGI Corporation was incorporated in 1882 and is headquartered in King of Prussia, Pennsylvania.

About Snam

(Get Free Report)

Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure in Italy. The company operates through Transportation, Storage, Regasification, Energy Transition, and other segments. It provides natural gas transportation and dispatching services; and owns and manages LNG regasification plants. The company also offers natural gas storage services through an integrated group of infrastructure comprising deposits, wells, gas treatment and compression plants, and the operational dispatching systems; and operates storage concessions in Lombardy, Emilia-Romagna, and in Abruzzo. In addition, it engages in the rental and maintenance of fibre optic telecommunications cables, as well as energy efficiency solutions for residential, industrial, tertiary, and public administration sectors; and management of biogas and biomethane plants. Further, the company offers engineering and project management services. It also operates in Albania, Saudi Arabia, Austria, China, Egypt, the United Arab Emirates, France, Greece, the United Kingdom, and the United States. The company was formerly known as Snam Rete Gas S.p.A. and changed its name to Snam S.p.A. in January 2012. Snam S.p.A. was founded in 1941 and is headquartered in San Donato Milanese, Italy.

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