Analyzing Delek US (NYSE:DK) and HF Sinclair (NYSE:DINO)

Delek US (NYSE:DKGet Rating) and HF Sinclair (NYSE:DINOGet Rating) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

89.2% of Delek US shares are held by institutional investors. Comparatively, 87.8% of HF Sinclair shares are held by institutional investors. 1.4% of Delek US shares are held by company insiders. Comparatively, 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 stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Delek US and HF Sinclair, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delek US 2 5 5 0 2.25
HF Sinclair 0 2 3 0 2.60

Delek US presently has a consensus price target of $22.64, indicating a potential downside of 0.80%. HF Sinclair has a consensus price target of $46.75, indicating a potential upside of 23.25%. Given HF Sinclair’s stronger consensus rating and higher probable upside, analysts plainly believe HF Sinclair is more favorable than Delek US.

Profitability

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

Net Margins Return on Equity Return on Assets
Delek US -1.91% -23.08% -3.34%
HF Sinclair 3.04% 4.08% 1.99%

Volatility and Risk

Delek US has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, HF Sinclair has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Valuation and Earnings

This table compares Delek US and HF Sinclair’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Delek US $10.65 billion 0.19 -$203.50 million ($2.77) -8.24
HF Sinclair $18.39 billion 0.34 $558.32 million $3.40 11.16

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

Summary

HF Sinclair beats Delek US on 10 of the 14 factors compared between the two stocks.

Delek US Company Profile (Get Rating)

Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates through three segments: Refining, Logistics, and Retail. The Refining segment processes crude oil and other feedstock 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 terminal. It owns and operates four independent refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, as well as three biodiesel facilities in Crossett, Arkansas, Cleburne, Texas, and New Albany. The Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products for third parties. It owns or leases capacity on approximately 400 miles of crude oil transportation pipelines, approximately 450 miles of refined product pipelines, an approximately 900-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 10.2 million barrels of active shell capacity; and owns and operates ten light product distribution terminals, as well as markets light products using third-party terminals. The Retail segment owns and leases 248 convenience store sites located primarily in West Texas and New Mexico. Its convenience stores offer various grades of gasoline and diesel under the DK or Alon brand; and food products and service, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise, as well as money orders to the public primarily under the 7-Eleven and DK or Alon brand names. It serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, the U.S. government, and independent retail fuel operators. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee.

HF Sinclair Company Profile (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.

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