Delek US Holdings (NYSE: DK) and CVR Energy (NYSE:CVI) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Dividends

Delek US Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. CVR Energy pays an annual dividend of $2.00 per share and has a dividend yield of 8.7%. Delek US Holdings pays out -25.9% of its earnings in the form of a dividend. 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.

Volatility and Risk

Delek US Holdings has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, CVR Energy has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Profitability

This table compares Delek US Holdings and CVR Energy’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%
CVR Energy 0.44% 2.10% 0.88%

Valuation and Earnings

This table compares Delek US Holdings and CVR Energy’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 0.34 $58.00 million ($2.32) -10.81
CVR Energy $5.54 billion 0.36 $313.00 million $0.28 81.79

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

Analyst Ratings

This is a summary of current ratings and price targets for Delek US Holdings and CVR Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delek US Holdings 0 10 4 0 2.29
CVR Energy 0 1 0 0 2.00

Delek US Holdings presently has a consensus price target of $26.08, indicating a potential upside of 4.00%. CVR Energy has a consensus price target of $14.00, indicating a potential downside of 38.86%. Given Delek US Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Delek US Holdings is more favorable than CVR Energy.

Institutional & Insider Ownership

97.0% of Delek US Holdings shares are owned by institutional investors. Comparatively, 99.5% of CVR Energy shares are owned by institutional investors. 1.6% of Delek US Holdings shares are owned by company insiders. Comparatively, 82.0% of CVR Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

CVR Energy beats Delek US Holdings on 10 of the 15 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.

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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