SPH vs UGI

For growth investors, Suburban Propane Partners, L.

P. (SPH) is the stronger pick with 7. 9% revenue growth year-over-year, versus 1. 1% for UGI Corporation (UGI). UGI Corporation (UGI) offers the better valuation at 10. 5x trailing P/E (10. 6x forward), making it the more compelling value choice. Analysts rate UGI Corporation (UGI) a "Buy" — based on 10 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, UGI Corporation (UGI) is the cheapest at 10.

5x versus Suburban Propane Partners, L. P. at 12. 1x. On forward P/E, Suburban Propane Partners, L. P. is actually cheaper at 10. 5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Suburban Propane Partners, L. P. wins at 0. 98x versus UGI Corporation's 2. 60x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Suburban Propane Partners, L.

P. (SPH) delivered a total return of +77. 2%, compared to -13. 1% for UGI Corporation (UGI). Over 10 years, the gap is even starker: SPH returned +26. 2% versus UGI's +9. 6%. 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), Suburban Propane Partners, L.

P. (SPH) is the lower-risk stock at 0. 25β versus UGI Corporation's 0. 27β — meaning UGI is approximately 8% more volatile than SPH relative to the S&P 500. On balance sheet safety, UGI Corporation (UGI) carries a lower debt/equity ratio of 158% versus 2% for Suburban Propane Partners, L. P. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Suburban Propane Partners, L.

P. (SPH) is pulling ahead at 7. 9% versus 1. 1% for UGI Corporation (UGI). On earnings-per-share growth, the picture is similar: UGI Corporation grew EPS 147. 2% year-over-year, compared to 42. 1% for Suburban Propane Partners, L. P.. Over a 3-year CAGR, SPH leads at -1. 6% 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.

UGI Corporation (UGI) is the more profitable company, earning 9.

3% net margin versus 7. 4% for Suburban Propane Partners, L. P. — meaning it keeps 9. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UGI leads at 15. 2% versus 14. 4% for SPH. At the gross margin level — before operating expenses — UGI leads at 49. 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, Suburban Propane Partners, L. P. (SPH) is the more undervalued stock at a PEG of 0. 98x versus UGI Corporation's 2. 60x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Suburban Propane Partners, L. P. (SPH) trades at 10. 5x forward P/E versus 10. 6x for UGI Corporation — 0. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UGI: 30. 0% to $42. 00.

All stocks in this comparison pay dividends.

Suburban Propane Partners, L. P. (SPH) offers the highest yield at 6. 6%, versus 4. 5% for UGI Corporation (UGI).

For long-horizon retirement investors, Suburban Propane Partners, L.

P. (SPH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 25), 6. 6% yield). Both have compounded well over 10 years (SPH: +26. 2%, UGI: +9. 6%), 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.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

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.