Reviewing HollyFrontier Corp (HOC) & CVR Energy (CVI)

HollyFrontier Corp (NYSE: HOC) and CVR Energy (NYSE:CVI) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Earnings & Valuation

This table compares HollyFrontier Corp and CVR Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HollyFrontier Corp N/A N/A N/A N/A N/A
CVR Energy $5.54 billion 0.31 $313.00 million $0.28 71.29

CVR Energy has higher revenue and earnings than HollyFrontier Corp.

Institutional and Insider Ownership

98.5% of CVR Energy shares are held by institutional investors. 82.0% of CVR Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

CVR Energy pays an annual dividend of $2.00 per share and has a dividend yield of 10.0%. HollyFrontier Corp does not pay 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for HollyFrontier Corp and CVR Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HollyFrontier Corp 0 0 0 0 N/A
CVR Energy 0 2 0 0 2.00

CVR Energy has a consensus target price of $14.50, indicating a potential downside of 27.35%. Given CVR Energy’s higher probable upside, analysts plainly believe CVR Energy is more favorable than HollyFrontier Corp.

Profitability

This table compares HollyFrontier Corp and CVR Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HollyFrontier Corp 2.14% 5.00% 3.10%
CVR Energy 0.44% 2.10% 0.88%

Summary

CVR Energy beats HollyFrontier Corp on 5 of the 9 factors compared between the two stocks.

About HollyFrontier Corp

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.

About CVR Energy

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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