Chevron Corporation (NYSE: CVX) and HollyFrontier Corporation (NYSE:HFC) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitabiliy, risk, earnings and institutional ownership.

Volatility & Risk

Chevron Corporation has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, HollyFrontier Corporation has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Insider and Institutional Ownership

62.6% of Chevron Corporation shares are held by institutional investors. Comparatively, 84.7% of HollyFrontier Corporation shares are held by institutional investors. 0.4% of Chevron Corporation shares are held by company insiders. Comparatively, 0.5% of HollyFrontier Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Chevron Corporation pays an annual dividend of $4.32 per share and has a dividend yield of 3.9%. HollyFrontier Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 4.3%. Chevron Corporation pays out 140.3% 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 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. Chevron Corporation has raised its dividend for 31 consecutive years and HollyFrontier Corporation has raised its dividend for 5 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Chevron Corporation 4.50% 4.13% 2.35%
HollyFrontier Corporation 1.13% 2.65% 1.50%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Chevron Corporation and HollyFrontier Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chevron Corporation 4 3 14 0 2.48
HollyFrontier Corporation 3 5 4 0 2.08

Chevron Corporation presently has a consensus target price of $115.83, suggesting a potential upside of 5.20%. HollyFrontier Corporation has a consensus target price of $30.40, suggesting a potential downside of 0.43%. Given Chevron Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe Chevron Corporation is more favorable than HollyFrontier Corporation.

Earnings & Valuation

This table compares Chevron Corporation and HollyFrontier Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chevron Corporation $116.78 billion 1.79 $18.04 billion $3.08 35.75
HollyFrontier Corporation $12.34 billion 0.43 $750.80 million $0.79 38.65

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

Summary

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

About Chevron Corporation

Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates, and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in integrated energy and chemicals operations. The Company operates through two business segments: Upstream and Downstream. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by international oil export pipelines; processing, transporting, storage and marketing of natural gas, and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products, and manufacturing and marketing of commodity petrochemicals.

About HollyFrontier Corporation

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.

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