Critical Review: CVR Refining, (CVRR) versus Hess Corporation (HES)
CVR Refining, (NYSE: CVRR) and Hess Corporation (NYSE:HES) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Hess Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. CVR Refining, does not pay a dividend. Hess Corporation pays out -5.2% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares CVR Refining, and Hess Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CVR Refining,||$5.19 billion||0.31||$230.60 million||$0.36||30.00|
|Hess Corporation||$4.94 billion||2.87||$1.45 billion||($19.30)||-2.33|
Hess Corporation has higher revenue, but lower earnings than CVR Refining,. Hess Corporation is trading at a lower price-to-earnings ratio than CVR Refining,, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
CVR Refining, has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Hess Corporation has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.
Insider and Institutional Ownership
11.0% of CVR Refining, shares are owned by institutional investors. Comparatively, 86.7% of Hess Corporation shares are owned by institutional investors. 11.8% of Hess Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for CVR Refining, and Hess Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CVR Refining, currently has a consensus target price of $10.08, indicating a potential downside of 6.64%. Hess Corporation has a consensus target price of $51.85, indicating a potential upside of 15.14%. Given Hess Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Hess Corporation is more favorable than CVR Refining,.
This table compares CVR Refining, and Hess Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hess Corporation beats CVR Refining, on 10 of the 15 factors compared between the two stocks.
CVR Refining, Company Profile
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.
Hess Corporation Company Profile
Hess Corporation is an exploration and production company. The Company is engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids (NGL) and natural gas. The Company’s segments include Exploration and Production, and Bakken Midstream. Its Exploration and Production segment explores for, develops, produces, purchases and sells crude oil, NGLs and natural gas with production operations primarily in the United States, Denmark, Equatorial Guinea, the Malaysia/Thailand Joint Development Area (JDA), Malaysia and Norway. The Bakken Midstream segment provides fee-based services, including crude oil and natural gas gathering, processing of natural gas and the fractionation of NGLs, transportation of crude oil by rail car, terminaling and loading crude oil and NGLs, and the storage and terminaling of propane, primarily in the Bakken shale play of North Dakota.
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