HollyFrontier Corporation (NYSE: HFC) and CVR Energy (NYSE:CVI) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitabiliy.

Volatility and Risk

HollyFrontier Corporation has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, CVR Energy has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Insider and Institutional Ownership

84.7% of HollyFrontier Corporation shares are held by institutional investors. Comparatively, 98.0% of CVR Energy shares are held by institutional investors. 0.5% of HollyFrontier Corporation shares are held by insiders. Comparatively, 82.0% of CVR Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

HollyFrontier Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 4.3%. CVR Energy pays an annual dividend of $2.00 per share and has a dividend yield of 10.6%. HollyFrontier Corporation pays out 167.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CVR Energy pays out 714.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HollyFrontier Corporation has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for HollyFrontier Corporation and CVR Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HollyFrontier Corporation 3 5 4 0 2.08
CVR Energy 0 2 0 0 2.00

HollyFrontier Corporation presently has a consensus target price of $30.40, indicating a potential downside of 0.43%. CVR Energy has a consensus target price of $14.50, indicating a potential downside of 23.44%. Given HollyFrontier Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe HollyFrontier Corporation is more favorable than CVR Energy.

Profitability

This table compares HollyFrontier Corporation and CVR Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HollyFrontier Corporation 1.13% 2.65% 1.50%
CVR Energy 0.44% 2.10% 0.88%

Valuation & Earnings

This table compares HollyFrontier Corporation and CVR Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HollyFrontier Corporation $12.34 billion 0.43 $750.80 million $0.79 38.65
CVR Energy $5.54 billion 0.30 $313.00 million $0.28 67.65

HollyFrontier Corporation has higher revenue and earnings than CVR Energy. HollyFrontier Corporation is trading at a lower price-to-earnings ratio than CVR Energy, indicating that it is currently the more affordable of the two stocks.

Summary

HollyFrontier Corporation beats CVR Energy on 12 of the 17 factors compared between the two stocks.

HollyFrontier Corporation Company Profile

HollyFrontier Corporation is an independent petroleum refiner. The Company produces various light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. It segments include Refining and Holly Energy Partners, L.P. (HEP). The Refining segment includes the operations of the Company’s El Dorado, Kansas (the El Dorado Refinery); refinery facilities located in Tulsa, Oklahoma (collectively, the Tulsa Refineries); a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the Navajo Refinery); refinery located in Cheyenne, Wyoming (the Cheyenne Refinery); a refinery in Woods Cross, Utah (the Woods Cross Refinery), and HollyFrontier Asphalt Company (HFC Asphalt). The HEP segment involves all of the operations of HEP. HEP is a limited partnership, which owns and operates logistic assets.

CVR Energy Company Profile

CVR Energy, Inc. (CVR Energy) is a holding company. The Company is engaged in the petroleum refining and nitrogen fertilizer manufacturing through its holdings in CVR Refining LP (CVR Refining or the Refining Partnership) and CVR Partners LP (CVR Partners or the Nitrogen Fertilizer Partnership). It operates under two business segments: petroleum (the petroleum and related businesses operated by the Refining Partnership) and nitrogen fertilizer (the nitrogen fertilizer business operated by the Nitrogen Fertilizer Partnership). The Company’s Refining Partnership is an independent petroleum refiner and marketer of transportation fuels. Its Nitrogen Fertilizer Partnership produces and markets nitrogen fertilizers in the form of urea and ammonium nitrate (UAN) and ammonia. The petroleum business consists of a coking medium-sour crude oil refinery in Coffeyville, Kansas and a crude oil refinery in Wynnewood, Oklahoma.

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