Head to Head Analysis: Delek US Holdings (DK) versus Chevron Corporation (CVX)
Delek US Holdings (NYSE: DK) and Chevron Corporation (NYSE:CVX) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitabiliy and dividends.
Delek US Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Chevron Corporation pays an annual dividend of $4.32 per share and has a dividend yield of 3.9%. Delek US Holdings pays out -25.9% of its earnings in the form of a dividend. 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. Chevron Corporation has raised its dividend for 31 consecutive years. Chevron Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and price targets for Delek US Holdings and Chevron Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delek US Holdings||0||13||3||0||2.19|
Delek US Holdings currently has a consensus price target of $23.29, suggesting a potential downside of 3.90%. Chevron Corporation has a consensus price target of $116.11, suggesting a potential upside of 5.77%. Given Chevron Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Chevron Corporation is more favorable than Delek US Holdings.
Insider & Institutional Ownership
97.2% of Delek US Holdings shares are owned by institutional investors. Comparatively, 62.6% of Chevron Corporation shares are owned by institutional investors. 1.4% of Delek US Holdings shares are owned by insiders. Comparatively, 0.4% of Chevron Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Delek US Holdings has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500. Comparatively, Chevron Corporation has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
This table compares Delek US Holdings and Chevron Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delek US Holdings||-3.15%||-4.60%||-1.80%|
Valuation & Earnings
This table compares Delek US Holdings and Chevron Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Delek US Holdings||$4.58 billion||0.33||$58.40 million||($2.32)||-10.44|
|Chevron Corporation||$116.78 billion||1.78||$18.04 billion||$3.08||35.64|
Chevron Corporation has higher revenue and earnings than Delek US Holdings. Delek US Holdings is trading at a lower price-to-earnings ratio than Chevron Corporation, indicating that it is currently the more affordable of the two stocks.
Chevron Corporation beats Delek US Holdings on 12 of the 16 factors compared between the two stocks.
Delek US Holdings Company Profile
Delek US Holdings, Inc. is a diversified downstream energy company. The Company has a broad platform consisting of refining, logistics, retail and wholesale marketing, renewables and asphalt operations. It operates through five segments: refining, logistics, asphalt, renewable and retail. Its refining assets consist of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day. The Logistics segment gathers, transports and stores crude oil, as well as markets, distributes transports and stores refined production in the southeast United States and West Texas. Its asphalt operations consist of 14 owned or operated asphalt terminals serving markets from Tennessee to the west coast. Its Renewables segment consists of plants in Texas and Arkansas that produce biodiesel fuel. The Company’s convenience store retail business operates approximately 300 convenience stores.
Chevron Corporation Company Profile
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.
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