Financial Contrast: Alon USA Partners, (ALDW) vs. Tesoro Corporation (ANDV)
Alon USA Partners, (NYSE: ALDW) and Tesoro Corporation (NYSE:ANDV) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Risk & Volatility
Alon USA Partners, has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Tesoro Corporation has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.
Earnings and Valuation
This table compares Alon USA Partners, and Tesoro Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alon USA Partners,||$2.04 billion||0.36||$136.33 million||$0.71||16.54|
Alon USA Partners, has higher revenue and earnings than Tesoro Corporation. Alon USA Partners, is trading at a lower price-to-earnings ratio than Tesoro Corporation, indicating that it is currently the more affordable of the two stocks.
Alon USA Partners, pays an annual dividend of $1.40 per share and has a dividend yield of 11.9%. Tesoro Corporation pays an annual dividend of $2.36 per share and has a dividend yield of 2.2%. Alon USA Partners, pays out 197.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tesoro Corporation pays out 84.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tesoro Corporation has increased its dividend for 2 consecutive years.
Institutional & Insider Ownership
5.3% of Alon USA Partners, shares are held by institutional investors. Comparatively, 77.4% of Tesoro Corporation shares are held by institutional investors. 0.9% of Tesoro Corporation 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.
This table compares Alon USA Partners, and Tesoro Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alon USA Partners,||2.20%||40.06%||5.91%|
This is a breakdown of recent recommendations for Alon USA Partners, and Tesoro Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alon USA Partners,||0||2||4||0||2.67|
Alon USA Partners, presently has a consensus target price of $12.25, indicating a potential upside of 4.34%. Tesoro Corporation has a consensus target price of $109.14, indicating a potential upside of 3.11%. Given Alon USA Partners,’s higher probable upside, equities research analysts clearly believe Alon USA Partners, is more favorable than Tesoro Corporation.
Tesoro Corporation beats Alon USA Partners, on 9 of the 15 factors compared between the two stocks.
About Alon USA Partners,
Alon USA Partners, LP (Alon) is engaged principally in the business of operating a crude oil refinery in Big Spring, Texas. The Company had a crude oil throughput capacity of 73,000 barrels per day, which the Company referred to as its Big Spring refinery, as of December 31, 2016. The Company refines crude oil into finished products, which the Company markets primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to retail convenience stores and other third-party distributors. Its Big Spring refinery is located on 1,306 acres in the Permian Basin in West Texas. Major processes at its Big Spring refinery include fluid catalytic cracking, naphtha reforming, vacuum distillation, hydrotreating, aromatic extraction and alkylation. The Company is managed and operated by Alon USA Partners GP, LLC (General Partner), an indirect subsidiary of Alon USA Energy, Inc. (Alon Energy), which is its parent company.
About Tesoro Corporation
Andeavor, formerly Tesoro Corporation, is an independent petroleum refining, logistics and marketing company. he Company operates through three segments. The Refining operating segment refines crude oil and other feedstocks into transportation fuels, such as gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a range of customers within its markets. The TLLP segment comprises Tesoro Logistics LP’s (TLLP) assets and operations, and includes certain crude oil and natural gas gathering assets, natural gas and natural gas liquids (NGLs) processing assets, and crude oil and refined products terminaling, and transportation. The marketing segment sells transportation fuels through branded and unbranded channels.
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