Analyzing Chevron Corporation (CVX) and Western Refining (WNR)
Chevron Corporation (NYSE: CVX) and Western Refining (NYSE:WNR) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitabiliy, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
This table compares Chevron Corporation and Western Refining’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
63.3% of Chevron Corporation shares are owned by institutional investors. Comparatively, 64.8% of Western Refining shares are owned by institutional investors. 0.4% of Chevron Corporation shares are owned by insiders. Comparatively, 26.5% of Western Refining shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Chevron Corporation pays an annual dividend of $4.32 per share and has a dividend yield of 4.0%. Western Refining pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. Chevron Corporation pays out 282.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Chevron Corporation has increased its dividend for 4 consecutive years and Western Refining has increased its dividend for 31 consecutive years. Western Refining is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Chevron Corporation has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Western Refining has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Earnings and Valuation
This table compares Chevron Corporation and Western Refining’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Chevron Corporation||$111.74 billion||1.84||$16.63 billion||$1.53||70.82|
Chevron Corporation has higher revenue and earnings than Western Refining. Western Refining is trading at a lower price-to-earnings ratio than Chevron Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Chevron Corporation and Western Refining, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Chevron Corporation currently has a consensus target price of $119.69, indicating a potential upside of 10.46%. Western Refining has a consensus target price of $29.78, indicating a potential downside of 17.70%. Given Chevron Corporation’s stronger consensus rating and higher possible upside, equities analysts clearly believe Chevron Corporation is more favorable than Western Refining.
Chevron Corporation beats Western Refining on 8 of the 14 factors compared between the two stocks.
About Chevron Corporation
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.
About Western Refining
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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