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

Profitability

This table compares CVR Refining and Delek US’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVR Refining 4.94% 18.39% 10.45%
Delek US 3.69% 12.23% 3.76%

Analyst Ratings

This is a summary of recent recommendations and price targets for CVR Refining and Delek US, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVR Refining 2 5 1 0 1.88
Delek US 0 2 13 2 3.00

CVR Refining currently has a consensus price target of $19.75, indicating a potential upside of 5.45%. Delek US has a consensus price target of $51.50, indicating a potential upside of 34.08%. Given Delek US’s stronger consensus rating and higher possible upside, analysts clearly believe Delek US is more favorable than CVR Refining.

Valuation and Earnings

This table compares CVR Refining and Delek US’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CVR Refining $5.66 billion 0.49 $88.80 million $0.60 31.22
Delek US $7.27 billion 0.44 $288.80 million $1.26 30.48

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

Dividends

CVR Refining pays an annual dividend of $2.64 per share and has a dividend yield of 14.1%. Delek US pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. CVR Refining pays out 440.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Delek US pays out 79.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

16.9% of CVR Refining shares are owned by institutional investors. Comparatively, 97.7% of Delek US shares are owned by institutional investors. 1.4% of Delek US shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

CVR Refining has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Delek US has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Summary

Delek US beats CVR Refining on 10 of the 17 factors compared between the two stocks.

CVR Refining Company Profile

CVR Refining, LP operates as an independent petroleum refiner and marketer of transportation fuels in the United States. The company owns and operates a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas; and a complex crude oil refinery in Wynnewood, Oklahoma. It also controls and operates logistics assets, including approximately 570 miles of owned and leased pipelines; approximately 130 crude oil transports; a network of crude oil gathering tank farms; and approximately 6.4 million barrels of owned and leased crude oil storage capacity, as well as approximately 4.6 million barrels of combined refined products and feedstocks storage capacity. In addition, the company owns 170,000 barrels per day pipeline system that transports crude oil from Broome Station facility to Coffeyville refinery; approximately 1.5 million barrels of crude oil storage capacity, which supports the gathering system and Coffeyville refinery; approximately 0.9 million barrels of crude oil storage capacity at Wynnewood refinery; and approximately 1.5 million barrels of crude oil storage capacity in Cushing, Oklahoma, as well as leases crude oil storage capacity of approximately 2.3 million barrels in Cushing and approximately 0.2 million barrels in Duncan, Oklahoma. CVR Refining GP, LLC operates as the general partner of CVR Refining, LP. The company was founded in 2012 and is based in Sugar Land, Texas. CVR Refining, LP is a subsidiary of CVR Energy, Inc.

Delek US Company Profile

Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company's Refining segment processes crude oil and other purchased feedstocks for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminals. This segment owns and operates four independent refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana. This segment also owns and operates two biodiesel facilities in Crossett, Arkansas and Cleburne, Texas; and a heavy crude oil refinery in Bakersfield, California. Its Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products for third parties. This segment owns or leases capacity on approximately 461 miles of crude oil transportation pipelines, approximately 406 miles of refined product pipelines, an approximately 600-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 7.3 million barrels of active shell capacity, as well as owns and operates nine light product terminals, and markets light products using third-party terminals. The company's Retail segment owns and leases 302 convenience store sites located primarily in Texas and New Mexico. This segment's convenience stores offer various grades of gasoline and diesel under the Alon brand name; and food products and service, tobacco products, beverages, and general merchandise, as well as money orders to the public under the 7-Eleven and Alon brand names. The company serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, independent retail fuel operators, and the United States government. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee.

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