Contrasting Delek US (DK) & Its Competitors

Delek US (NYSE: DK) is one of 25 public companies in the “Petroleum refining” industry, but how does it weigh in compared to its competitors? We will compare Delek US to related businesses based on the strength of its dividends, analyst recommendations, valuation, earnings, institutional ownership, profitability and risk.

Insider and Institutional Ownership

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91.1% of Delek US shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Petroleum refining” companies are owned by institutional investors. 1.4% of Delek US shares are owned by company insiders. Comparatively, 9.0% of shares of all “Petroleum refining” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Delek US pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. Delek US pays out 63.5% of its earnings in the form of a dividend. As a group, “Petroleum refining” companies pay a dividend yield of 2.9% and pay out 78.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Delek US and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Delek US $7.27 billion $288.80 million 36.72
Delek US Competitors $73.25 billion $2.97 billion 23.05

Delek US’s competitors have higher revenue and earnings than Delek US. Delek US is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Delek US has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Delek US’s competitors have a beta of 1.04, suggesting that their average stock price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Delek US and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delek US 1 3 11 2 2.82
Delek US Competitors 436 1762 2316 163 2.47

Delek US presently has a consensus price target of $40.64, suggesting a potential downside of 12.16%. As a group, “Petroleum refining” companies have a potential upside of 0.56%. Given Delek US’s competitors higher probable upside, analysts clearly believe Delek US has less favorable growth aspects than its competitors.

Profitability

This table compares Delek US and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Delek US 3.99% 5.99% 2.10%
Delek US Competitors 4.69% 483.21% 335.98%

Summary

Delek US competitors beat Delek US on 8 of the 15 factors compared.

Delek US Company Profile

Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company's Refining segment processes crude oil and other purchased feedstocks for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminals. This segment owns and operates four independent refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana. This segment also owns and operates two biodiesel facilities in Crossett, Arkansas and Cleburne, Texas; and a heavy crude oil refinery in Bakersfield, California. Its Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products for third parties. This segment owns or leases capacity on approximately 461 miles of crude oil transportation pipelines, approximately 406 miles of refined product pipelines, an approximately 600-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 7.3 million barrels of active shell capacity, as well as owns and operates nine light product terminals, and markets light products using third-party terminals. The company's Retail segment owns and leases 302 convenience store sites located primarily in Texas and New Mexico. This segment's convenience stores offer various grades of gasoline and diesel under the Alon brand name; and food products and service, tobacco products, beverages, and general merchandise, as well as money orders to the public under the 7-Eleven and Alon brand names. The company serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, independent retail fuel operators, and the United States government. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee.

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