Financial Analysis: Ultrapar Participacoes (NYSE:UGP) versus Expro Group (NYSE:XPRO)

Expro Group (NYSE:XPRO) and Ultrapar Participacoes (NYSE:UGP) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Institutional & Insider Ownership

92.1% of Expro Group shares are held by institutional investors. Comparatively, 3.6% of Ultrapar Participacoes shares are held by institutional investors. 1.8% of Expro Group shares are held by insiders. Comparatively, 1.8% of Ultrapar Participacoes shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Expro Group 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
Expro Group	$1.71 billion	0.57	$51.92 million	$0.58	14.69
Ultrapar Participacoes	$24.76 billion	0.14	$438.05 million	$0.36	8.58

Ultrapar Participacoes has higher revenue and earnings than Expro Group. Ultrapar Participacoes is trading at a lower price-to-earnings ratio than Expro Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Expro Group has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Ultrapar Participacoes has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares Expro Group and Ultrapar Participacoes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expro Group	3.98%	6.89%	4.40%
Ultrapar Participacoes	1.65%	14.29%	5.70%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Expro Group and Ultrapar Participacoes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expro Group	0	1	2	0	2.67
Ultrapar Participacoes	0	1	3	1	3.00

Expro Group currently has a consensus price target of $12.00, suggesting a potential upside of 40.85%. Ultrapar Participacoes has a consensus price target of $3.20, suggesting a potential upside of 3.56%. Given Expro Group’s higher probable upside, equities research analysts clearly believe Expro Group is more favorable than Ultrapar Participacoes.

About Expro Group

Expro Group Holdings N.V. engages in the provision of energy services in North and Latin America, Europe and Sub-Saharan Africa, the Middle East and North Africa, and the Asia-Pacific. The company provides well construction services, such as technology solutions in drilling, tubular running services, and cementing and tubulars; and well management services, including well flow management, subsea well access, and well intervention and integrity solutions. It serves exploration and production companies in onshore and offshore environments in approximately 60 countries. Expro Group Holdings N.V. was founded in 1938 and is based in Houston, Texas.

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.