Northern Tier Energy (NYSE: NTI) and Chevron Corporation (NYSE:CVX) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Northern Tier Energy and Chevron Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northern Tier Energy 0 0 0 0 N/A
Chevron Corporation 3 4 14 0 2.52

Chevron Corporation has a consensus price target of $116.06, indicating a potential upside of 6.25%. Given Chevron Corporation’s higher probable upside, analysts clearly believe Chevron Corporation is more favorable than Northern Tier Energy.

Dividends

Chevron Corporation pays an annual dividend of $4.32 per share and has a dividend yield of 4.0%. Northern Tier Energy does not pay a dividend. Chevron Corporation pays out 140.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Tier Energy has increased its dividend for 31 consecutive years and Chevron Corporation has increased its dividend for 2 consecutive years.

Profitability

This table compares Northern Tier Energy and Chevron Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northern Tier Energy 1.69% 12.03% 4.34%
Chevron Corporation 4.50% 4.13% 2.36%

Insider and Institutional Ownership

62.6% of Chevron Corporation shares are held by institutional investors. 0.4% of Chevron Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Northern Tier Energy and Chevron Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Northern Tier Energy N/A N/A N/A N/A N/A
Chevron Corporation $116.78 billion 1.77 $19.04 billion $3.08 35.46

Chevron Corporation has higher revenue and earnings than Northern Tier Energy.

Summary

Chevron Corporation beats Northern Tier Energy on 7 of the 11 factors compared between the two stocks.

Northern Tier Energy Company Profile

Northern Tier Energy LP is a downstream energy limited partnership. The Company has refining, retail and logistics operations that serve the Petroleum Administration for Defense District II (PADD II) region of the United States. It operates through two segments: the refining business and the retail business. Its refining segment consists of over 97,800 barrels per stream day refinery located in St. Paul Park, Minnesota. Its refineries process light, heavy, sweet and sour crudes into refined products. It also owns storage and transportation assets. The retail segment operates over 170 convenience stores and supports over 110 franchised convenience stores, which are operated under the SuperAmerica brand. These convenience stores are located throughout Minnesota, Wisconsin and South Dakota and sell various grades of gasoline and diesel, tobacco products and immediately consumable items, such as beverages, prepared food and a range of snacks and prepackaged items.

Chevron Corporation Company Profile

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.

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