WallStSmart

Ultrapar Participacoes SA ADR (UGP)vsValero Energy Corporation (VLO)

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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

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 7.3Quality: 6.3
Piotroski: 3/9Altman Z: 4.76

VLO

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 5.5Value: 7.3Quality: 7.0
Piotroski: 6/9
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

UGPSignificantly Overvalued (-75.6%)

Margin of Safety

-75.6%

Fair Value

$2.99

Current Price

$4.91

$1.92 premium

UndervaluedFair: $2.99Overvalued
VLOUndervalued (+42.4%)

Margin of Safety

+42.4%

Fair Value

$353.81

Current Price

$240.03

$113.78 discount

UndervaluedFair: $353.81Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

UGP5 strengths · Avg: 8.8/10
P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
4.7610/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.788/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.06B8/10

Generating 1.1B in free cash flow

VLO3 strengths · Avg: 9.0/10
EPS GrowthGrowth
317.9%10/10

Earnings expanding 317.9% YoY

Market CapQuality
$70.94B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.81B8/10

Generating 1.8B in free cash flow

Areas to Watch

UGP4 concerns · Avg: 2.8/10
Profit MarginProfitability
1.7%3/10

1.7% margin — thin

Operating MarginProfitability
3.1%3/10

Operating margin of 3.1%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-59.5%2/10

Earnings declined 59.5%

VLO4 concerns · Avg: 2.8/10
P/E RatioValuation
30.8x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

PEG RatioValuation
4.172/10

Expensive relative to growth rate

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

Comparative Analysis Report

WallStSmart Research

Bull 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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