UGI vs OGS

For growth investors, ONE Gas, Inc.

(OGS) is the stronger pick with 16. 5% revenue growth year-over-year, versus 1. 1% for UGI Corporation (UGI). UGI Corporation (UGI) offers the better valuation at 11. 3x trailing P/E (11. 5x 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 11.

3x versus ONE Gas, Inc. at 19. 7x. On forward P/E, UGI Corporation is actually cheaper at 11. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: UGI Corporation wins at 2. 82x versus ONE Gas, Inc. 's 5. 11x.

Over the past 5 years, ONE Gas, Inc.

(OGS) delivered a total return of +26. 5%, compared to -5. 7% for UGI Corporation (UGI). Over 10 years, the gap is even starker: OGS returned +79. 8% versus UGI's +17. 2%. 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), ONE Gas, Inc.

(OGS) is the lower-risk stock at -0. 00β versus UGI Corporation's 0. 27β — meaning UGI is approximately -8422% more volatile than OGS relative to the S&P 500. On balance sheet safety, ONE Gas, Inc. (OGS) carries a lower debt/equity ratio of 99% versus 158% for UGI Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), ONE Gas, Inc.

(OGS) is pulling ahead at 16. 5% 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 12. 1% for ONE Gas, Inc.. Over a 3-year CAGR, OGS leads at -2. 0% 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.

ONE Gas, Inc.

(OGS) is the more profitable company, earning 10. 9% net margin versus 9. 3% for UGI Corporation — meaning it keeps 10. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OGS leads at 18. 8% versus 15. 2% for UGI. At the gross margin level — before operating expenses — OGS leads at 58. 8%, 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, UGI Corporation (UGI) is the more undervalued stock at a PEG of 2. 82x versus ONE Gas, Inc. 's 5. 11x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, UGI Corporation (UGI) trades at 11. 5x forward P/E versus 17. 9x for ONE Gas, Inc. — 6. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UGI: 19. 9% to $42. 00.

All stocks in this comparison pay dividends.

UGI Corporation (UGI) offers the highest yield at 4. 2%, versus 3. 1% for ONE Gas, Inc. (OGS).

For long-horizon retirement investors, ONE Gas, Inc.

(OGS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 00), 3. 1% yield). Both have compounded well over 10 years (OGS: +79. 8%, UGI: +17. 2%), 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.

In terms of investment character: UGI is a small-cap deep-value stock; OGS is a small-cap high-growth stock. 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.