Ultrapar Participacoes SA ADR (UGP)vsValero Energy Corporation (VLO)
UGP
Ultrapar Participacoes SA ADR
$4.91
-3.73%
ENERGY · Cap: $5.40B
VLO
Valero Energy Corporation
$240.03
-0.84%
ENERGY · Cap: $70.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Ultrapar Participacoes SA ADR generates 23% more annual revenue ($142.37B vs $115.94B). VLO leads profitability with a 2.0% profit margin vs 1.7%. UGP appears more attractively valued with a PEG of 0.78. VLO earns a higher WallStSmart Score of 53/100 (C-).
UGP
Buy53
out of 100
Grade: C-
VLO
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-75.6%
Fair Value
$2.99
Current Price
$4.91
$1.92 premium
Margin of Safety
+42.4%
Fair Value
$353.81
Current Price
$240.03
$113.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Generating 1.1B in free cash flow
Earnings expanding 317.9% YoY
Large-cap with strong market position
Generating 1.8B in free cash flow
Areas to Watch
1.7% margin — thin
Operating margin of 3.1%
Weak financial health signals
Earnings declined 59.5%
Premium valuation, high expectations priced in
2.0% margin — thin
Expensive relative to growth rate
Revenue declined 2.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : UGP
The strongest argument for UGP centers on P/E Ratio, Altman Z-Score, PEG Ratio. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bull Case : VLO
The strongest argument for VLO centers on EPS Growth, Market Cap, Free Cash Flow.
Bear Case : UGP
The primary concerns for UGP are Profit Margin, Operating Margin, Piotroski F-Score. Thin 1.7% margins leave little buffer for downturns.
Bear Case : VLO
The primary concerns for VLO are P/E Ratio, Profit Margin, PEG Ratio. Thin 2.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
VLO carries more volatility with a beta of 0.73 — expect wider price swings.
UGP is growing revenue faster at 7.2% — sustainability is the question.
VLO generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor OIL & GAS REFINING & MARKETING industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UGP scores higher overall (53/100 vs 53/100). VLO offers better value entry with a 42.4% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ultrapar Participacoes SA ADR
ENERGY · OIL & GAS REFINING & MARKETING · USA
Ultrapar Participaes SA is engaged in the gas distribution, fuel distribution, chemical products, storage and pharmacy businesses mainly in Brazil, Mexico, Uruguay, Venezuela, other Latin American countries, the United States, Canada, the Far East, Europe and internationally. The company is headquartered in So Paulo, Brazil.
Valero Energy Corporation
ENERGY · OIL & GAS REFINING & MARKETING · USA
Valero Energy Corporation is a Fortune 500 international manufacturer and marketer of transportation fuels, other petrochemical products, and power. It is headquartered in San Antonio, Texas, United States.
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