Western Refining (WNR) & SINOPEC Shangai Petrochemical (SHI) Financial Analysis
Western Refining (NYSE: WNR) and SINOPEC Shangai Petrochemical (NYSE:SHI) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitabiliy.
This is a breakdown of current ratings for Western Refining and SINOPEC Shangai Petrochemical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SINOPEC Shangai Petrochemical||1||0||0||0||1.00|
Western Refining currently has a consensus target price of $30.75, suggesting a potential downside of 15.01%. Given Western Refining’s stronger consensus rating and higher possible upside, research analysts plainly believe Western Refining is more favorable than SINOPEC Shangai Petrochemical.
Western Refining pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. SINOPEC Shangai Petrochemical pays an annual dividend of $3.26 per share and has a dividend yield of 5.8%. 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. SINOPEC Shangai Petrochemical pays out 35.1% of its earnings in the form of a dividend. Western Refining has raised its dividend for 4 consecutive years. SINOPEC Shangai Petrochemical is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Western Refining and SINOPEC Shangai Petrochemical’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SINOPEC Shangai Petrochemical||$12.36 billion||0.49||$1.40 billion||$9.28||6.08|
SINOPEC Shangai Petrochemical has higher revenue and earnings than Western Refining. SINOPEC Shangai Petrochemical is trading at a lower price-to-earnings ratio than Western Refining, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
64.8% of Western Refining shares are owned by institutional investors. Comparatively, 1.0% of SINOPEC Shangai Petrochemical shares are owned by institutional investors. 26.5% of Western Refining shares are owned by insiders. Comparatively, 1.0% of SINOPEC Shangai Petrochemical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Western Refining and SINOPEC Shangai Petrochemical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SINOPEC Shangai Petrochemical||8.79%||27.54%||20.37%|
Volatility and Risk
Western Refining has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, SINOPEC Shangai Petrochemical has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
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.
SINOPEC Shangai Petrochemical 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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