Head-To-Head Analysis: Northern Tier Energy (NTI) vs. HollyFrontier Corporation (HFC)

Northern Tier Energy (NYSE: NTI) and HollyFrontier Corporation (NYSE:HFC) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Northern Tier Energy and HollyFrontier Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northern Tier Energy 1.69% 12.03% 4.34%
HollyFrontier Corporation 1.13% 2.65% 1.50%

Analyst Ratings

This is a summary of current ratings and price targets for Northern Tier Energy and HollyFrontier Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northern Tier Energy 0 0 0 0 N/A
HollyFrontier Corporation 3 5 4 0 2.08

HollyFrontier Corporation has a consensus target price of $30.40, suggesting a potential upside of 6.44%. Given HollyFrontier Corporation’s higher possible upside, analysts plainly believe HollyFrontier Corporation is more favorable than Northern Tier Energy.

Insider and Institutional Ownership

84.9% of HollyFrontier Corporation shares are held by institutional investors. 0.5% of HollyFrontier Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Northern Tier Energy and HollyFrontier Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Northern Tier Energy N/A N/A N/A N/A N/A
HollyFrontier Corporation $12.34 billion 0.41 $733.52 million $0.79 36.15

HollyFrontier Corporation has higher revenue and earnings than Northern Tier Energy.

Dividends

HollyFrontier Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 4.6%. Northern Tier Energy does not pay a dividend. HollyFrontier Corporation pays out 167.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Tier Energy has increased its dividend for 5 consecutive years and HollyFrontier Corporation has increased its dividend for 2 consecutive years.

Summary

HollyFrontier Corporation beats Northern Tier Energy on 6 of the 11 factors compared between the two stocks.

About Northern Tier Energy

Northern Tier Energy LP is a downstream energy limited partnership. The Company has refining, retail and logistics operations that serve the Petroleum Administration for Defense District II (PADD II) region of the United States. It operates through two segments: the refining business and the retail business. Its refining segment consists of over 97,800 barrels per stream day refinery located in St. Paul Park, Minnesota. Its refineries process light, heavy, sweet and sour crudes into refined products. It also owns storage and transportation assets. The retail segment operates over 170 convenience stores and supports over 110 franchised convenience stores, which are operated under the SuperAmerica brand. These convenience stores are located throughout Minnesota, Wisconsin and South Dakota and sell various grades of gasoline and diesel, tobacco products and immediately consumable items, such as beverages, prepared food and a range of snacks and prepackaged items.

About HollyFrontier Corporation

HollyFrontier Corporation is an independent petroleum refiner. The Company produces various light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. It segments include Refining and Holly Energy Partners, L.P. (HEP). The Refining segment includes the operations of the Company’s El Dorado, Kansas (the El Dorado Refinery); refinery facilities located in Tulsa, Oklahoma (collectively, the Tulsa Refineries); a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the Navajo Refinery); refinery located in Cheyenne, Wyoming (the Cheyenne Refinery); a refinery in Woods Cross, Utah (the Woods Cross Refinery), and HollyFrontier Asphalt Company (HFC Asphalt). The HEP segment involves all of the operations of HEP. HEP is a limited partnership, which owns and operates logistic assets.

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