Ultrapar vs Magnolia Oil & Gas

Ultrapar Participações S.A. and MAGNOLIA OIL & GAS CORP - A are the focus of this stock comparison page. It examines their business models, financial performance, and market context in a neutral, accessible way, to help readers understand how these two equities relate within the sector. Educational content, not financial advice.

Ultrapar Participações S.A. and MAGNOLIA OIL & GAS CORP - A are the focus of this stock comparison page. It examines their business models, financial performance, and market context in a neutral, acce...

Comparison Snapshot

Key Financial Metrics

UGP

Metric

MGY

$4.69B

Market Cap

$4.27B

10.25%

Potential Profit

14.03%

Hold

Analyst Rating

Buy

Investment Analysis

Ultrapar

UGP

Pros

Ultrapar benefits from diversified operations across energy distribution, fuel retail, and storage in Brazil and other Latin American markets, reducing reliance on a single sector.
The company has demonstrated consistent operational cash generation, with a recent return on equity above its 10-year average, indicating improved profitability.
Ultrapar’s market capitalisation and revenue base are substantial, providing scale advantages in its core markets and relative stability versus smaller peers.

Considerations

Ultrapar operates with a relatively high debt-to-equity ratio, which could constrain financial flexibility during periods of economic stress or rising interest rates.
Net profit margins remain narrow, reflecting competitive pressures and sensitivity to commodity price swings in its core fuel distribution and gas segments.
The firm’s growth prospects are rated modest by some analysts, with limited visibility on major new revenue drivers beyond its existing businesses.

Magnolia Oil & Gas

MGY

Pros

Magnolia Oil & Gas has delivered robust returns on equity and invested capital, reflecting efficient operations and strong execution in its US onshore assets.
The company maintains a disciplined capital allocation strategy, prioritising shareholder returns through dividends and share buybacks alongside organic growth.
Magnolia’s focus on high-return, low-decline assets in the Eagle Ford and Austin Chalk provides a stable production base with lower reinvestment risk.

Considerations

Magnolia’s performance is highly correlated to oil and gas prices, exposing it to volatility and macroeconomic cycles beyond its control.
The firm’s relatively smaller scale compared to major integrated peers may limit its ability to absorb large swings in commodity markets.
Future growth depends on successful exploration and development, with execution risks tied to drilling results and operational disruptions.

About The Companies

Ultrapar (UGP)

Ultrapar Participações S.A. (ticker: UGP) is a diversified Brazilian group active across fuel distribution, LPG, industrial chemicals and storage/logistics. Its best‑known brands include Ipiranga (fuel retail and convenience stores), Ultragaz (LPG distribution) and Oxiteno (speciality chemicals). With a market capitalisation of about $4.27B, Ultrapar combines retail and industrial cash flows, offering some resilience through scale while remaining exposed to oil price moves, chemical cyclical demand and Brazilian macroeconomic trends. Key investor considerations include exposure to domestic fuel margins and consumer demand, foreign‑exchange sensitivity to the Brazilian real, regulatory and environmental oversight, and capital allocation choices such as dividends or acquisitions. The group’s integrated network can support steady cash generation, but revenues and returns can fluctuate with commodities and economic cycles. This is general, educational information only and not personal investment advice; suitability depends on your objectives, risk tolerance and time horizon.

Magnolia Oil & Gas (MGY)

Magnolia Oil & Gas is an independent energy company focused on the exploration, development, and production of oil and natural gas. Its primary operations are strategically located in South Texas, within the productive Eagle Ford Shale and Austin Chalk formations. The company holds significant acreage in two key areas: Karnes and Giddings. This geographical focus allows it to concentrate its expertise and resources on these well-established oil and gas fields. As an upstream energy firm, its financial performance is often linked to the broader cycles of global energy markets and commodity prices for oil and gas. Investors might watch companies like Magnolia for their role in the US energy sector, but it's important to remember that the value of such investments can fluctuate, and past performance doesn't guarantee future returns.

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Comparison Snapshot