Sasol (NYSE: SSL) and Valero Energy Corporation (NYSE:VLO) are both large-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Valuation & Earnings

This table compares Sasol and Valero Energy Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sasol $12.97 billion 1.51 $3.82 billion N/A N/A
Valero Energy Corporation $79.10 billion 0.39 $4.86 billion $4.05 17.17

Valero Energy Corporation has higher revenue and earnings than Sasol.

Institutional and Insider Ownership

1.8% of Sasol shares are owned by institutional investors. Comparatively, 80.8% of Valero Energy Corporation shares are owned by institutional investors. 1.0% of Sasol shares are owned by company insiders. Comparatively, 0.5% of Valero Energy Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Sasol and Valero Energy Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sasol N/A N/A N/A
Valero Energy Corporation 2.17% 8.59% 3.88%

Analyst Ratings

This is a summary of recent ratings for Sasol and Valero Energy Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sasol 0 1 4 0 2.80
Valero Energy Corporation 0 7 9 0 2.56

Valero Energy Corporation has a consensus target price of $72.38, suggesting a potential upside of 4.09%. Given Valero Energy Corporation’s higher possible upside, analysts plainly believe Valero Energy Corporation is more favorable than Sasol.

Risk and Volatility

Sasol has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Valero Energy Corporation has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Dividends

Sasol pays an annual dividend of $1.28 per share and has a dividend yield of 4.2%. Valero Energy Corporation pays an annual dividend of $2.80 per share and has a dividend yield of 4.0%. Valero Energy Corporation pays out 69.1% of its earnings in the form of a dividend. Valero Energy Corporation has raised its dividend for 6 consecutive years.

Summary

Valero Energy Corporation beats Sasol on 10 of the 15 factors compared between the two stocks.

Sasol Company Profile

Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.

Valero Energy Corporation Company Profile

Valero Energy Corporation (Valero) is an independent petroleum refiner and ethanol producer. The Company’s segments include refining, ethanol and Valero Energy Partners LP (VLP). The refining segment includes its refining operations and the associated marketing activities. The ethanol segment includes its ethanol operations and the associated marketing activities, and logistics assets that support its ethanol operations. The Company owns logistics assets (crude oil pipelines, refined petroleum product pipelines, terminals, tanks, marine docks, truck rack bays and other assets) that support its refining operations. Some of these assets are owned by VLP, which is a midstream master limited partnership owned by the Company. VLP’s assets include crude oil and refined petroleum products pipeline and terminal systems in the United States Gulf Coast and the United States Mid-Continent regions. Its refineries produce conventional gasolines, premium gasolines and lubricants, among others.

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