CIG vs UGP

For growth investors, Companhia Energética de Minas Gerais (CIG) is the stronger pick with 5.

3% revenue growth year-over-year, versus 4. 5% for Ultrapar Participações S. A. (UGP). Companhia Energética de Minas Gerais (CIG) offers the better valuation at 7. 0x trailing P/E (1. 9x forward), making it the more compelling value choice. Analysts rate Companhia Energética de Minas Gerais (CIG) a "Buy" — based on 5 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Companhia Energética de Minas Gerais (CIG) is the cheapest at 7.

0x versus Ultrapar Participações S. A. at 13. 3x. On forward P/E, Companhia Energética de Minas Gerais is actually cheaper at 1. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Companhia Energética de Minas Gerais wins at 0. 11x versus Ultrapar Participações S. A. 's 0. 11x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Companhia Energética de Minas Gerais (CIG) delivered a total return of +137.

5%, compared to +67. 9% for Ultrapar Participações S. A. (UGP). Over 10 years, the gap is even starker: CIG returned +315. 8% versus UGP's -26. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Companhia Energética de Minas Gerais (CIG) is the lower-risk stock at 0.

72β versus Ultrapar Participações S. A. 's 0. 91β — meaning UGP is approximately 27% more volatile than CIG relative to the S&P 500. On balance sheet safety, Companhia Energética de Minas Gerais (CIG) carries a lower debt/equity ratio of 70% versus 123% for Ultrapar Participações S. A. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Companhia Energética de Minas Gerais (CIG) is pulling ahead at 5.

3% versus 4. 5% for Ultrapar Participações S. A. (UGP). On earnings-per-share growth, the picture is similar: Ultrapar Participações S. A. grew EPS 3. 8% year-over-year, compared to -31. 7% for Companhia Energética de Minas Gerais. Over a 3-year CAGR, CIG leads at 6. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Companhia Energética de Minas Gerais (CIG) is the more profitable company, earning 11.

5% net margin versus 1. 7% for Ultrapar Participações S. A. — meaning it keeps 11. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CIG leads at 14. 1% versus 3. 2% for UGP. At the gross margin level — before operating expenses — CIG leads at 16. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Companhia Energética de Minas Gerais (CIG) is the more undervalued stock at a PEG of 0. 11x versus Ultrapar Participações S. A. 's 0. 11x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Companhia Energética de Minas Gerais (CIG) trades at 1. 9x forward P/E versus 2. 5x for Ultrapar Participações S. A. — 0. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UGP: -8. 5% to $5. 40.

All stocks in this comparison pay dividends.

Companhia Energética de Minas Gerais (CIG) offers the highest yield at 11. 5%, versus 6. 7% for Ultrapar Participações S. A. (UGP).

For long-horizon retirement investors, Companhia Energética de Minas Gerais (CIG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

72), 11. 5% yield, +315. 8% 10Y return). Both have compounded well over 10 years (CIG: +315. 8%, UGP: -26. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (CIG (Utilities) and UGP (Energy)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.