Critical Analysis: Suncor Energy (SU) and CVR Refining, (CVRR)
Suncor Energy (NYSE: SU) and CVR Refining, (NYSE:CVRR) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
This table compares Suncor Energy and CVR Refining,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Suncor Energy has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, CVR Refining, has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Suncor Energy and CVR Refining,, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Suncor Energy presently has a consensus target price of $42.86, indicating a potential upside of 35.45%. CVR Refining, has a consensus target price of $9.67, indicating a potential upside of 42.16%. Given CVR Refining,’s higher possible upside, analysts plainly believe CVR Refining, is more favorable than Suncor Energy .
Earnings and Valuation
This table compares Suncor Energy and CVR Refining,’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Suncor Energy||$24.16 billion||2.17||$7.35 billion||$1.22||25.93|
|CVR Refining,||$5.19 billion||0.19||$230.60 million||$0.36||18.89|
Suncor Energy has higher revenue and earnings than CVR Refining,. CVR Refining, is trading at a lower price-to-earnings ratio than Suncor Energy , indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
65.6% of Suncor Energy shares are held by institutional investors. Comparatively, 12.2% of CVR Refining, shares are held by institutional investors. 1.0% of Suncor Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Suncor Energy pays an annual dividend of $0.95 per share and has a dividend yield of 3.0%. CVR Refining, does not pay a dividend. Suncor Energy pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Suncor Energy beats CVR Refining, on 14 of the 17 factors compared between the two stocks.
About Suncor Energy
Suncor Energy Inc. (Suncor) is an integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. Suncor also conducts energy trading activities.
About CVR Refining,
CVR Refining, LP is an independent downstream energy limited partnership with refining and related logistics assets that operates in the mid-continent region. The Company is a petroleum refiner. It owned and operated a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas with a rated capacity of 115,000 barrels per calendar day (bpcd) and a complex crude oil refinery in Wynnewood, Oklahoma with a rated capacity of 70,000 bpcd capable of processing 20,000 bpcd of light sour crude oils (within its rated capacity of 70,000 bpcd), as of December 31, 2016. In addition, it also controlled and operated supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of crude oil gathering tank farms, approximately 6.4 million barrels of owned and leased crude oil storage and over 4.5 million barrels of combined refined products and feedstocks storage capacity, as of December 31, 2016.
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