Critical Review: Chevron (NYSE:CVX) vs. DHT (NYSE:DHT)

DHT (NYSE:DHT) and Chevron (NYSE:CVX) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DHT	65.52%	39.40%	28.63%
Chevron	9.57%	11.09%	6.54%

Risk and Volatility

DHT has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500. Comparatively, Chevron has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Institutional & Insider Ownership

58.5% of DHT shares are held by institutional investors. Comparatively, 72.4% of Chevron shares are held by institutional investors. 0.6% of Chevron shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for DHT and Chevron, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHT	0	2	3	0	2.60
Chevron	1	5	20	0	2.73

DHT presently has a consensus price target of $21.00, suggesting a potential downside of 3.65%. Chevron has a consensus price target of $207.22, suggesting a potential upside of 1.38%. Given Chevron’s stronger consensus rating and higher possible upside, analysts clearly believe Chevron is more favorable than DHT.

Earnings & Valuation

This table compares DHT and Chevron”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHT	$498.40 million	7.04	$211.09 million	$2.94	7.41
Chevron	$189.03 billion	2.14	$12.30 billion	$10.43	19.60

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

Dividends

DHT pays an annual dividend of $4.88 per share and has a dividend yield of 22.4%. Chevron pays an annual dividend of $7.12 per share and has a dividend yield of 3.5%. DHT pays out 166.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chevron pays out 68.3% of its earnings in the form of a dividend. Chevron has raised its dividend for 38 consecutive years.

Summary

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

About DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.

About Chevron

Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant. The Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels, commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives; and transports crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.