Head-To-Head Survey: Star Group (SGU) & Its Peers

Star Group (NYSE:SGU) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its rivals? We will compare Star Group to similar businesses based on the strength of its earnings, institutional ownership, profitability, risk, analyst recommendations, dividends and valuation.

Valuation & Earnings

This table compares Star Group and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Star Group	$1.78 billion	$73.50 million	7.05
Star Group Competitors	$10.86 billion	$5.51 billion	-0.80

Star Group’s rivals have higher revenue and earnings than Star Group. Star Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Star Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Star Group	4.57%	24.43%	8.39%
Star Group Competitors	-457.98%	19.26%	6.33%

Volatility and Risk

Star Group has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Star Group’s rivals have a beta of -3.72, indicating that their average stock price is 472% less volatile than the S&P 500.

Insider & Institutional Ownership

40.4% of Star Group shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 20.4% of Star Group shares are held by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Star Group pays an annual dividend of $0.79 per share and has a dividend yield of 6.0%. Star Group pays out 42.2% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.2% and pay out -131.6% of their earnings in the form of a dividend. Star Group has raised its dividend for 13 consecutive years. Star Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Star Group and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Group	0	1	0	0	2.00
Star Group Competitors	5981	26988	40848	2422	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.97%. Given Star Group’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Star Group has less favorable growth aspects than its rivals.

Summary

Star Group rivals beat Star Group on 8 of the 15 factors compared.

About Star Group

Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintain, and repairs heating and air conditioning equipment. As of September 30, 2023, the company served approximately 402,200 full service residential and commercial home heating oil and propane customers and 52,400 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,600 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.