Head-To-Head Review: CVR Refining (CVRR) & Equinor ASA (EQNR)

CVR Refining (NYSE:CVRR) and Equinor ASA (NYSE:EQNR) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares CVR Refining and Equinor ASA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVR Refining 6.16% 26.00% 14.85%
Equinor ASA 9.08% 15.62% 5.66%

Dividends

CVR Refining pays an annual dividend of $3.60 per share and has a dividend yield of 21.0%. Equinor ASA pays an annual dividend of $0.67 per share and has a dividend yield of 2.7%. CVR Refining pays out 600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinor ASA pays out 48.6% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares CVR Refining and Equinor ASA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CVR Refining $5.66 billion 0.45 $88.80 million $0.60 28.55
Equinor ASA $61.19 billion 1.35 $4.59 billion $1.38 17.96

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

Volatility & Risk

CVR Refining has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Equinor ASA has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CVR Refining and Equinor ASA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVR Refining 3 4 1 0 1.75
Equinor ASA 0 5 3 0 2.38

CVR Refining presently has a consensus target price of $18.92, indicating a potential upside of 10.43%. Given CVR Refining’s higher possible upside, equities research analysts clearly believe CVR Refining is more favorable than Equinor ASA.

Institutional and Insider Ownership

16.3% of CVR Refining shares are held by institutional investors. Comparatively, 5.2% of Equinor ASA shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Equinor ASA beats CVR Refining on 8 of the 15 factors compared between the two stocks.

CVR Refining Company Profile

CVR Refining, LP operates as an independent petroleum refiner and marketer of transportation fuels in the United States. The company owns and operates a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas; and a complex crude oil refinery in Wynnewood, Oklahoma. It also controls and operates logistics assets, including approximately 570 miles of owned and leased pipelines; approximately 130 crude oil transports; a network of crude oil gathering tank farms; and approximately 6.4 million barrels of owned and leased crude oil storage capacity, as well as approximately 4.6 million barrels of combined refined products and feedstocks storage capacity. In addition, the company owns 170,000 barrels per day pipeline system that transports crude oil from Broome Station facility to Coffeyville refinery; approximately 1.5 million barrels of crude oil storage capacity, which supports the gathering system and Coffeyville refinery; approximately 0.9 million barrels of crude oil storage capacity at Wynnewood refinery; and approximately 1.5 million barrels of crude oil storage capacity in Cushing, Oklahoma, as well as leases crude oil storage capacity of approximately 2.3 million barrels in Cushing and approximately 0.2 million barrels in Duncan, Oklahoma. CVR Refining GP, LLC operates as the general partner of CVR Refining, LP. The company was founded in 2012 and is based in Sugar Land, Texas. CVR Refining, LP is a subsidiary of CVR Energy, Inc.

Equinor ASA Company Profile

Equinor ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development & Production Norway; Development & Production USA; Development & Production International; Marketing, Midstream & Processing; New Energy Solutions; Technology, Projects & Drilling; Exploration; and Global Strategy & Business Development segments. It also transports, processes, manufactures, markets, and trades in oil and gas commodities, such as crude and condensate products, gas liquids, natural gas, and liquefied natural gas; markets and trades in electricity and emission rights; and operates refineries, processing and power plants, and terminals. In addition, the company develops wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2017, it had proved oil and gas reserves of 5,367 million barrels of oil equivalent. The company was formerly known as Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was founded in 1972 and is headquartered in Stavanger, Norway.

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