Head to Head Analysis: HollyFrontier Corporation (HFC) & SINOPEC Shangai Petrochemical Company (SHI)
HollyFrontier Corporation (NYSE: HFC) and SINOPEC Shangai Petrochemical Company (NYSE:SHI) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitabiliy, risk, dividends and earnings.
Insider and Institutional Ownership
85.3% of HollyFrontier Corporation shares are owned by institutional investors. Comparatively, 1.0% of SINOPEC Shangai Petrochemical Company shares are owned by institutional investors. 0.5% of HollyFrontier Corporation shares are owned by insiders. Comparatively, 1.0% of SINOPEC Shangai Petrochemical Company shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares HollyFrontier Corporation and SINOPEC Shangai Petrochemical Company’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HollyFrontier Corporation||$11.60 billion||0.40||$838.07 million||($1.87)||-14.16|
|SINOPEC Shangai Petrochemical Company||$12.24 billion||0.50||$1.38 billion||$9.28||6.07|
SINOPEC Shangai Petrochemical Company has higher revenue and earnings than HollyFrontier Corporation. HollyFrontier Corporation is trading at a lower price-to-earnings ratio than SINOPEC Shangai Petrochemical Company, indicating that it is currently the more affordable of the two stocks.
HollyFrontier Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 5.0%. SINOPEC Shangai Petrochemical Company pays an annual dividend of $1.32 per share and has a dividend yield of 2.3%. HollyFrontier Corporation pays out -70.6% of its earnings in the form of a dividend. SINOPEC Shangai Petrochemical Company pays out 14.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SINOPEC Shangai Petrochemical Company has raised its dividend for 5 consecutive years. HollyFrontier Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current ratings and recommmendations for HollyFrontier Corporation and SINOPEC Shangai Petrochemical Company, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SINOPEC Shangai Petrochemical Company||1||0||0||0||1.00|
HollyFrontier Corporation presently has a consensus target price of $33.10, indicating a potential upside of 25.05%. Given HollyFrontier Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe HollyFrontier Corporation is more favorable than SINOPEC Shangai Petrochemical Company.
This table compares HollyFrontier Corporation and SINOPEC Shangai Petrochemical Company’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SINOPEC Shangai Petrochemical Company||8.79%||27.54%||20.37%|
Volatility & Risk
HollyFrontier Corporation has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, SINOPEC Shangai Petrochemical Company has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.
SINOPEC Shangai Petrochemical Company beats HollyFrontier Corporation on 9 of the 17 factors compared between the two stocks.
HollyFrontier Corporation 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.
SINOPEC Shangai Petrochemical Company Company Profile
Sinopec Shanghai Petrochemical Company Limited (Shanghai Petrochemical) is a petrochemical company. The Company and its subsidiaries are principally engaged in processing crude oil into synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products. The Company operates in five operating segments. The synthetic fibres segment produces polyester and acrylic fibers, which are used in the textile and apparel industries. The resins and plastics segment produces polyester chips, polyethylene resins and films, polypropylene resins and polyvinyl alcohol (PVA) granules. The intermediate petrochemicals segment produces p-xylene, benzene and ethylene oxide. The petroleum products segment is equipped with crude oil distillation facilities used to produce vacuum and atmospheric gas oils used as feedstock of the Company’s downstream processing facilities. The trading of petrochemical products segment is engaged in importing and exporting of petrochemical products.
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