Cross Timbers Royalty Trust (NYSE:CRT) vs. Ultrapar Participacoes (NYSE:UGP) Critical Contrast

Cross Timbers Royalty Trust (NYSE:CRT) and Ultrapar Participacoes (NYSE:UGP) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Earnings and Valuation

This table compares Cross Timbers Royalty Trust 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
Cross Timbers Royalty Trust	$5.79 million	14.38	$6.15 million	$0.53	26.19
Ultrapar Participacoes	$153.26 billion	0.06	$439.48 million	$0.61	12.70

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

Profitability

This table compares Cross Timbers Royalty Trust and Ultrapar Participacoes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cross Timbers Royalty Trust	74.04%	147.68%	81.96%
Ultrapar Participacoes	2.28%	18.84%	7.17%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cross Timbers Royalty Trust and Ultrapar Participacoes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cross Timbers Royalty Trust	0	1	0	0	2.00
Ultrapar Participacoes	0	5	3	1	2.56

Ultrapar Participacoes has a consensus target price of $6.54, indicating a potential downside of 15.56%. Given Ultrapar Participacoes’ stronger consensus rating and higher probable upside, analysts plainly believe Ultrapar Participacoes is more favorable than Cross Timbers Royalty Trust.

Insider & Institutional Ownership

9.7% of Cross Timbers Royalty Trust shares are owned by institutional investors. Comparatively, 3.6% of Ultrapar Participacoes shares are owned by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are owned by insiders. Comparatively, 1.8% of Ultrapar Participacoes shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Cross Timbers Royalty Trust pays an annual dividend of $0.77 per share and has a dividend yield of 5.5%. Ultrapar Participacoes pays an annual dividend of $0.31 per share and has a dividend yield of 4.0%. Cross Timbers Royalty Trust pays out 145.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ultrapar Participacoes pays out 50.8% of its earnings in the form of a dividend.

Risk and Volatility

Cross Timbers Royalty Trust has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Ultrapar Participacoes has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Summary

Ultrapar Participacoes beats Cross Timbers Royalty Trust on 9 of the 17 factors compared between the two stocks.

About Cross Timbers Royalty Trust

Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico; and 75% net profits working interest in four properties in Texas and three properties in Oklahoma. The company was founded in 1991 and is based in Dallas, 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.