Financial Comparison: Chevron (CVX) and CVR Refining (CVRR)

Chevron (NYSE: CVX) and CVR Refining (NYSE:CVRR) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Dividends

Chevron pays an annual dividend of $4.48 per share and has a dividend yield of 3.5%. CVR Refining pays an annual dividend of $2.04 per share and has a dividend yield of 9.1%. Chevron pays out 121.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CVR Refining pays out 340.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chevron has raised its dividend for 32 consecutive years.

Valuation and Earnings

This table compares Chevron and CVR Refining’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chevron $141.72 billion 1.70 $9.20 billion $3.70 34.17
CVR Refining $5.66 billion 0.58 $88.80 million $0.60 37.25

Chevron has higher revenue and earnings than CVR Refining. Chevron is trading at a lower price-to-earnings ratio than CVR Refining, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Chevron and CVR Refining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chevron 6.95% 5.83% 3.41%
CVR Refining 2.96% 8.19% 4.59%

Volatility and Risk

Chevron has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, CVR Refining has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Institutional & Insider Ownership

64.3% of Chevron shares are held by institutional investors. Comparatively, 15.3% of CVR Refining shares are held by institutional investors. 0.4% of Chevron shares are held 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Chevron and CVR Refining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chevron 0 5 18 0 2.78
CVR Refining 1 3 2 0 2.17

Chevron presently has a consensus price target of $135.89, indicating a potential upside of 7.48%. CVR Refining has a consensus price target of $17.63, indicating a potential downside of 21.14%. Given Chevron’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Chevron is more favorable than CVR Refining.

Summary

Chevron beats CVR Refining on 12 of the 17 factors compared between the two stocks.

Chevron Company Profile

Chevron Corporation, through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals, and fuel and lubricant additives, as well as plastics for industrial uses. It is also involved in the cash management and debt financing activities; insurance operations; real estate activities; and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.

CVR Refining Company Profile

CVR Refining, LP operates as an independent petroleum refiner and marketer of transportation fuels in the United States. The company owns and operates a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas; and a complex crude oil refinery in Wynnewood, Oklahoma. It also controls and operates logistics assets, including approximately 570 miles of owned and leased pipelines; approximately 130 crude oil transports; a network of crude oil gathering tank farms; and approximately 6.4 million barrels of owned and leased crude oil storage capacity, as well as approximately 4.6 million barrels of combined refined products and feedstocks storage capacity. In addition, the company owns 170,000 barrels per day pipeline system that transports crude oil from Broome Station facility to Coffeyville refinery; approximately 1.5 million barrels of crude oil storage capacity, which supports the gathering system and Coffeyville refinery; approximately 0.9 million barrels of crude oil storage capacity at Wynnewood refinery; and approximately 1.5 million barrels of crude oil storage capacity in Cushing, Oklahoma, as well as leases crude oil storage capacity of approximately 2.3 million barrels in Cushing and approximately 0.2 million barrels in Duncan, Oklahoma. CVR Refining GP, LLC operates as the general partner of CVR Refining, LP. The company was founded in 2012 and is based in Sugar Land, Texas. CVR Refining, LP is a subsidiary of CVR Energy, Inc.

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