Head-To-Head Survey: Delek US (DK) and Its Peers

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

Insider and Institutional Ownership

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, endowments and large money managers believe a stock is poised for long-term growth.

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.

Volatility & Risk

Delek US has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Delek US’s peers have a beta of 1.04, suggesting that their average share price is 4% more volatile than the S&P 500.

Profitability

This table compares Delek US and its peers’ 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%

Earnings and Valuation

This table compares Delek US and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Delek US $7.27 billion $288.80 million 37.11
Delek US Competitors $73.25 billion $2.97 billion 23.18

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Delek US and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delek US 1 3 11 2 2.82
Delek US Competitors 435 1767 2323 164 2.47

Delek US currently has a consensus price target of $40.64, suggesting a potential downside of 13.08%. As a group, “Petroleum refining” companies have a potential downside of 0.71%. Given Delek US’s peers higher possible upside, analysts plainly believe Delek US has less favorable growth aspects than its peers.

Summary

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

About Delek US

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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