Head-To-Head Survey: HollyFrontier Corp (HOC) and Western Refining (NYSE:WNR)

HollyFrontier Corp (NYSE: HOC) and Western Refining (NYSE:WNR) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitabiliy, institutional ownership, risk and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
HollyFrontier Corp -1.23% -3.97% -1.60%
Western Refining 0.90% 2.76% 1.52%

Insider & Institutional Ownership

64.8% of Western Refining shares are owned by institutional investors. 26.5% of Western Refining shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Western Refining pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. HollyFrontier Corp does not pay a dividend. Western Refining pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HollyFrontier Corp has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for HollyFrontier Corp and Western Refining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HollyFrontier Corp 0 0 0 0 N/A
Western Refining 0 6 3 0 2.33

Western Refining has a consensus price target of $30.75, indicating a potential downside of 15.01%. Given Western Refining’s higher probable upside, analysts clearly believe Western Refining is more favorable than HollyFrontier Corp.

Valuation and Earnings

This table compares HollyFrontier Corp and Western Refining’s top-line revenue, earnings per share (EPS) 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
Western Refining N/A N/A N/A $1.52 23.80

Summary

Western Refining beats HollyFrontier Corp on 8 of the 10 factors compared between the two stocks.

HollyFrontier Corp Company Profile

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.

Western Refining Company Profile

Western Refining, Inc. is an independent crude oil refiner and marketer of refined products. The Company operates through segments, including refining, Western Refining Logistics, LP (WNRL), retail and Other. As of December 31, 2016, the refining segment owned and operated three refineries that process crude oil and other feedstocks primarily into gasoline, diesel fuel, jet fuel and asphalt. The refining segment also sells refined products in the Mid-Atlantic region and Mexico. WNRL owns and operates terminal, storage, transportation and wholesale assets in the Southwest and terminal and storage assets in the Upper Great Plains region. The retail segment operates retail convenience stores and unmanned commercial fleet fueling (cardlock) locations located in the Southwest (Southwest Retail) and Upper Great Plains (SuperAmerica) regions. It markets refined products to a customer base, including wholesale distributors and retail chains.

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