Financial Analysis: HF Sinclair (NYSE:DINO) vs. Imperial Oil (NYSE:IMO)

HF Sinclair (NYSE:DINOGet Rating) and Imperial Oil (NYSE:IMOGet Rating) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares HF Sinclair and Imperial Oil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HF Sinclair 3.04% 4.08% 1.99%
Imperial Oil 6.59% 11.56% 6.19%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for HF Sinclair and Imperial Oil, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HF Sinclair 0 2 1 0 2.33
Imperial Oil 0 1 1 0 2.50

HF Sinclair presently has a consensus price target of $43.00, suggesting a potential upside of 13.13%. Imperial Oil has a consensus price target of $59.50, suggesting a potential upside of 18.67%. Given Imperial Oil’s stronger consensus rating and higher possible upside, analysts plainly believe Imperial Oil is more favorable than HF Sinclair.

Risk and Volatility

HF Sinclair has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, Imperial Oil has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Institutional & Insider Ownership

87.8% of HF Sinclair shares are held by institutional investors. Comparatively, 21.1% of Imperial Oil shares are held by institutional investors. 0.4% of HF Sinclair shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares HF Sinclair and Imperial Oil’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HF Sinclair $18.39 billion 0.34 $558.32 million $3.40 11.18
Imperial Oil $29.99 billion 1.12 $1.98 billion $2.79 17.97

Imperial Oil has higher revenue and earnings than HF Sinclair. HF Sinclair is trading at a lower price-to-earnings ratio than Imperial Oil, indicating that it is currently the more affordable of the two stocks.

Summary

Imperial Oil beats HF Sinclair on 10 of the 13 factors compared between the two stocks.

About HF Sinclair (Get Rating)

HF Sinclair Corporation operates as an independent energy company. It produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, specialty and modified asphalt, and others. The company also owns and operates refineries located in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming; and markets its refined products principally in the Southwest United States and Rocky Mountains, Pacific Northwest, and in other neighboring Plains states. In addition, it supplies fuels to approximately 1,300 independent Sinclair-branded stations and licenses the use of the Sinclair brand at approximately 300 additional locations, as well as engages in the growing renewables business. Further, the company produces base oils and other specialized lubricants; and provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum industry. HF Sinclair Corporation was incorporated in 2021 and is headquartered in Dallas, Texas.

About Imperial Oil (Get Rating)

Imperial Oil Limited engages in exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream and Chemical segments. The Upstream segment explores for, and produces crude oil, natural gas, synthetic oil, and bitumen. As of December 31, 2021, this segment had 386 million oil-equivalent barrels of proved undeveloped reserves. The Downstream segment is involved in the transportation and refining of crude oil, blending of refined products and the distribution, and marketing of refined products. It also transports crude oil to refineries by contracted pipelines, common carrier pipelines, and rail; maintains a distribution system to move petroleum products to market by pipeline, tanker, rail, and road transport; and owns and operates fuel terminals, natural gas liquids, and products pipelines in Alberta, Manitoba, and Ontario. In addition, this segment markets and supplies petroleum products to motoring public through approximately 2,400 Esso and Mobil-branded sites. Further, it sells petroleum products, including fuel, asphalt, and lubricants for industrial and transportation customers, independent marketers, and resellers, as well as other refiners serving the agriculture, residential heating, and commercial markets through branded fuel and lubricant resellers. The Chemical segment manufactures and markets various petrochemicals, benzene, aromatic and aliphatic solvents, plasticizer intermediates, and polyethylene resin. The company was incorporated in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited is a subsidiary of Exxon Mobil Corporation.

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