Analyzing Blueknight Energy Partners (NASDAQ:BKEP) & HF Sinclair (NYSE:DINO)

Blueknight Energy Partners (NASDAQ:BKEPGet Rating) and HF Sinclair (NYSE:DINOGet Rating) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility and Risk

Blueknight Energy Partners has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, HF Sinclair has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Valuation and Earnings

This table compares Blueknight Energy Partners and HF Sinclair’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blueknight Energy Partners $115.42 million 1.64 $110.53 million $0.23 19.65
HF Sinclair $18.39 billion 0.59 $558.32 million $3.40 14.36

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Blueknight Energy Partners and HF Sinclair, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blueknight Energy Partners 0 0 0 0 N/A
HF Sinclair 0 1 6 0 2.86

HF Sinclair has a consensus target price of $54.00, indicating a potential upside of 10.59%. Given HF Sinclair’s higher probable upside, analysts clearly believe HF Sinclair is more favorable than Blueknight Energy Partners.

Dividends

Blueknight Energy Partners pays an annual dividend of $0.17 per share and has a dividend yield of 3.8%. HF Sinclair pays an annual dividend of $1.60 per share and has a dividend yield of 3.3%. Blueknight Energy Partners pays out 73.9% of its earnings in the form of a dividend. HF Sinclair pays out 47.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Blueknight Energy Partners has increased its dividend for 1 consecutive years. Blueknight Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

33.1% of Blueknight Energy Partners shares are owned by institutional investors. Comparatively, 88.2% of HF Sinclair shares are owned by institutional investors. 1.0% of Blueknight Energy Partners shares are owned by company insiders. Comparatively, 0.4% of HF Sinclair shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Blueknight Energy Partners and HF Sinclair’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blueknight Energy Partners 30.41% -14.50% 24.93%
HF Sinclair 2.55% 7.42% 3.64%

About Blueknight Energy Partners (Get Rating)

Blueknight Energy Partners, L.P. provides integrated terminalling services for companies engaged in the production, distribution, and handling of liquid asphalt in the United States. As of March 1, 2022, it had 54 terminals located in 26 states. Blueknight Energy Partners G.P., L.L.C. operates as a general partner of Blueknight Energy Partners, L.P. The company was formerly known as SemGroup Energy Partners, L.P. and changed its name to Blueknight Energy Partners, L.P. in December 2009. Blueknight Energy Partners, L.P. was incorporated in 2007 and is headquartered in Tulsa, Oklahoma.

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.

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