Alon USA Partners, (NYSE: ALDW) and Suncor Energy (NYSE:SU) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitabiliy.

Profitability

This table compares Alon USA Partners, and Suncor Energy ‘s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alon USA Partners, 2.20% 40.06% 5.91%
Suncor Energy 8.85% 4.52% 2.29%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alon USA Partners, and Suncor Energy , as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alon USA Partners, 0 2 3 0 2.60
Suncor Energy 0 3 14 1 2.89

Alon USA Partners, presently has a consensus target price of $12.25, suggesting a potential upside of 0.74%. Suncor Energy has a consensus target price of $42.86, suggesting a potential upside of 29.91%. Given Suncor Energy ‘s stronger consensus rating and higher probable upside, analysts plainly believe Suncor Energy is more favorable than Alon USA Partners,.

Insider and Institutional Ownership

6.8% of Alon USA Partners, shares are owned by institutional investors. Comparatively, 65.6% of Suncor Energy shares are owned by institutional investors. 1.0% of Suncor Energy shares are owned 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.

Volatility and Risk

Alon USA Partners, has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares Alon USA Partners, and Suncor Energy ‘s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alon USA Partners, $2.04 billion 0.37 $136.09 million $0.71 17.13
Suncor Energy $24.06 billion 2.28 $7.32 billion $1.22 27.04

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

Dividends

Alon USA Partners, pays an annual dividend of $1.52 per share and has a dividend yield of 12.5%. Suncor Energy pays an annual dividend of $0.95 per share and has a dividend yield of 2.9%. Alon USA Partners, pays out 214.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suncor Energy pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alon USA Partners, has raised its dividend for 2 consecutive years. Alon USA Partners, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Suncor Energy beats Alon USA Partners, on 13 of the 18 factors compared between the two stocks.

About Alon USA Partners,

Alon USA Partners, LP (Alon) is engaged principally in the business of operating a crude oil refinery in Big Spring, Texas. The Company had a crude oil throughput capacity of 73,000 barrels per day, which the Company referred to as its Big Spring refinery, as of December 31, 2016. The Company refines crude oil into finished products, which the Company markets primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to retail convenience stores and other third-party distributors. Its Big Spring refinery is located on 1,306 acres in the Permian Basin in West Texas. Major processes at its Big Spring refinery include fluid catalytic cracking, naphtha reforming, vacuum distillation, hydrotreating, aromatic extraction and alkylation. The Company is managed and operated by Alon USA Partners GP, LLC (General Partner), an indirect subsidiary of Alon USA Energy, Inc. (Alon Energy), which is its parent company.

About Suncor Energy

Suncor Energy Inc. (Suncor) is an integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. Suncor also conducts energy trading activities.

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