Valero Energy Corporation (VLO) vs. Its Competitors Critical Review
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 companies based on the strength of its analyst recommendations, earnings, institutional ownership, valuation, risk, dividends and profitability.
Insider and Institutional Ownership
80.6% of Valero Energy Corporation shares are held by institutional investors. Comparatively, 47.2% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 0.5% of Valero Energy Corporation shares are held by company insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
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||0.82%||0.99%||0.99%|
This is a summary of recent ratings for Valero Energy Corporation and its rivals, as reported 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||1730||2147||110||2.46|
Valero Energy Corporation currently has a consensus price target of $75.81, suggesting a potential downside of 2.23%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 11.26%. Given Valero Energy Corporation’s rivals higher probable upside, analysts plainly believe Valero Energy Corporation has less favorable growth aspects than its rivals.
Volatility & Risk
Valero Energy Corporation has a beta of 1.22, suggesting 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, suggesting that their average share price is 30% more volatile than the S&P 500.
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 increased its dividend for 6 consecutive years.
Valuation and Earnings
This table compares Valero Energy Corporation and its rivals top-line 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||22.75|
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.
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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