Analyzing Chevron Corporation (CVX) and Delek US Holdings (DK)

Chevron Corporation (NYSE: CVX) and Delek US Holdings (NYSE:DK) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Profitability

This table compares Chevron Corporation and Delek US Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chevron Corporation 4.50% 4.13% 2.36%
Delek US Holdings -3.15% -4.60% -1.80%

Volatility and Risk

Chevron Corporation has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Delek US Holdings has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Chevron Corporation and Delek US Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chevron Corporation 3 4 14 0 2.52
Delek US Holdings 0 12 4 0 2.25

Chevron Corporation presently has a consensus price target of $116.75, suggesting a potential upside of 9.65%. Delek US Holdings has a consensus price target of $24.71, suggesting a potential upside of 17.18%. Given Delek US Holdings’ higher possible upside, analysts plainly believe Delek US Holdings is more favorable than Chevron Corporation.

Valuation and Earnings

This table compares Chevron Corporation and Delek US Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chevron Corporation $116.78 billion 1.73 $19.04 billion $3.08 34.57
Delek US Holdings $4.58 billion 0.29 $58.00 million ($2.32) -9.09

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.

Insider and Institutional Ownership

62.8% of Chevron Corporation shares are held by institutional investors. Comparatively, 97.0% of Delek US Holdings shares are held by institutional investors. 0.4% of Chevron Corporation shares are held by insiders. Comparatively, 1.4% of Delek US Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Chevron Corporation pays an annual dividend of $4.32 per share and has a dividend yield of 4.1%. Delek US Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. 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. Delek US Holdings pays out -25.9% of its earnings in the form of a dividend. Delek US Holdings has raised its dividend for 31 consecutive years.

Summary

Chevron Corporation beats Delek US Holdings on 10 of the 16 factors compared between the two stocks.

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.

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.

What are top analysts saying about Chevron Corporation? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Chevron Corporation and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit