UGP or ENB: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Oil and Gas - Production and Pipelines sector should consider Ultrapar Participacoes S.A. (UGP) as a more attractive option compared to Enbridge (ENB) for value investing opportunities [1]. Valuation Metrics - Ultrapar Participacoes S.A. has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision compared to Enbridge, which has a Zacks Rank of 3 (Hold) [3]. - UGP's forward P/E ratio is 10.36, significantly lower than ENB's forward P/E of 20.86, suggesting UGP is undervalued relative to ENB [5]. - The PEG ratio for UGP is 2.61, while ENB's PEG ratio is 4.17, indicating UGP has a better balance between its price and expected earnings growth [5]. - UGP's P/B ratio is 1.20, compared to ENB's P/B of 2.14, further supporting UGP's valuation as more attractive [6]. - Based on these valuation metrics, UGP holds a Value grade of A, while ENB has a Value grade of D, highlighting UGP's superior valuation profile [6]. Earnings Outlook - UGP is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7].