Valero Energy Corporation (VLO) and The Competition Financial Analysis
Valero Energy Corporation (NYSE: VLO) is one of 38 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it compare to its peers? We will compare Valero Energy Corporation to similar companies based on the strength of its dividends, institutional ownership, risk, profitability, analyst recommendations, valuation and earnings.
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.
Volatility & Risk
Valero Energy Corporation has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Valero Energy Corporation’s peers have a beta of 1.30, meaning that their average stock 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 1,030.5% of their earnings in the form of a dividend. Valero Energy Corporation has increased its dividend for 6 consecutive years.
This table compares Valero Energy Corporation and its peers’ 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||-1.29%||1.84%||1.32%|
This is a breakdown of recent ratings and target prices for Valero Energy Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Valero Energy Corporation||0||10||9||0||2.47|
|Valero Energy Corporation Competitors||369||1736||2157||110||2.46|
Valero Energy Corporation currently has a consensus target price of $76.73, indicating a potential downside of 1.31%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 10.66%. Given Valero Energy Corporation’s peers higher possible upside, analysts plainly believe Valero Energy Corporation has less favorable growth aspects than its peers.
Valuation and Earnings
This table compares Valero Energy Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Valero Energy Corporation||$79.10 billion||$4.86 billion||19.20|
|Valero Energy Corporation Competitors||$45.68 billion||$4.44 billion||22.87|
Valero Energy Corporation has higher revenue and earnings than its peers. Valero Energy Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Valero Energy Corporation beats its peers on 8 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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