Valero Energy Corporation (NYSE: VLO) is one of 38 public companies in the “Oil & Gas Refining and Marketing” industry, but how does it compare to its rivals? We will compare Valero Energy Corporation to similar businesses based on the strength of its analyst recommendations, valuation, earnings, risk, dividends, profitability and institutional ownership.

Volatility and Risk

Valero Energy Corporation has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Valero Energy Corporation’s rivals have a beta of 1.30, meaning that their average share price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Valero Energy Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valero Energy Corporation 0 9 10 0 2.53
Valero Energy Corporation Competitors 368 1729 2146 110 2.46

Valero Energy Corporation presently has a consensus price target of $75.81, indicating a potential downside of 2.23%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 11.25%. Given Valero Energy Corporation’s rivals higher possible upside, analysts plainly believe Valero Energy Corporation has less favorable growth aspects than its rivals.

Dividends

Valero Energy Corporation pays an annual dividend of $2.80 per share and has a dividend yield of 3.6%. Valero Energy Corporation pays out 69.1% of its earnings in the form of a dividend. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.1% and pay out 864.8% of their earnings in the form of a dividend. Valero Energy Corporation has raised its dividend for 6 consecutive years.

Valuation and Earnings

This table compares Valero Energy Corporation and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Valero Energy Corporation $79.10 billion $4.86 billion 19.15
Valero Energy Corporation Competitors $45.68 billion $4.44 billion 22.72

Valero Energy Corporation has higher revenue and earnings than its rivals. Valero Energy Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

80.6% of Valero Energy Corporation shares are owned by institutional investors. Comparatively, 47.2% of shares of all “Oil & Gas Refining and Marketing” companies are owned by institutional investors. 0.5% of Valero Energy Corporation shares are owned by company insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Valero Energy Corporation 2.17% 8.59% 3.88%
Valero Energy Corporation Competitors -1.52% 1.12% 1.03%

Summary

Valero Energy Corporation beats its rivals on 9 of the 15 factors compared.

About Valero Energy Corporation

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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