HF Sinclair (NYSE:DINO) versus NuStar Energy (NYSE:NS) Head-To-Head Comparison

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

Earnings & Valuation

This table compares NuStar Energy and HF Sinclair’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NuStar Energy $1.62 billion 0.93 $38.22 million ($1.26) -10.87
HF Sinclair $18.39 billion 0.59 $558.32 million $3.40 14.19

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

Profitability

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

Net Margins Return on Equity Return on Assets
NuStar Energy 0.50% 86.48% 4.26%
HF Sinclair 2.55% 7.42% 3.64%

Institutional & Insider Ownership

57.7% of NuStar Energy shares are owned by institutional investors. Comparatively, 88.2% of HF Sinclair shares are owned by institutional investors. 10.0% of NuStar Energy 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

NuStar Energy pays an annual dividend of $1.60 per share and has a dividend yield of 11.7%. HF Sinclair pays an annual dividend of $1.60 per share and has a dividend yield of 3.3%. NuStar Energy pays out -127.0% 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. NuStar Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

NuStar Energy has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500. Comparatively, HF Sinclair has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NuStar Energy and HF Sinclair, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NuStar Energy 0 1 3 0 2.75
HF Sinclair 0 1 6 0 2.86

NuStar Energy presently has a consensus target price of $18.50, indicating a potential upside of 34.74%. HF Sinclair has a consensus target price of $57.57, indicating a potential upside of 19.02%. Given NuStar Energy’s higher probable upside, equities analysts clearly believe NuStar Energy is more favorable than HF Sinclair.

About NuStar Energy (Get Rating)

NuStar Energy L.P. engages in the terminalling, storage, and marketing of petroleum products in the United States and internationally. The company also engages in the transportation of petroleum products and anhydrous ammonia. It operates through three segments: Pipeline, Storage, and Fuels Marketing. The Pipeline segment transports refined products, crude oil, and anhydrous ammonia. The Storage segment owns terminal and storage facilities, which offer storage, handling, and other services for petroleum products, crude oil, specialty chemicals, renewable fuels, and other liquids; and pilotage, tug assistance, line handling, launch, emergency response, and other ship services. The Fuels Marketing segment is involved in bunkering operations in the Gulf Coast; blending operations; and purchase of petroleum products for resale. As of December 31, 2021, it had 3,205 miles of refined product pipelines and 2,230 miles of crude oil pipelines in Texas, Oklahoma, Kansas, Colorado, and New Mexico; a 2,050-mile refined product pipeline originating in southern Kansas and terminating at Jamestown, North Dakota; a 450-mile refined product pipeline originating at Marathon Petroleum Corporation's Mandan, North Dakota refinery and terminating in Minneapolis, Minnesota; a 2,000-mile anhydrous ammonia pipeline; and 29 terminal and storage facilities, which offer approximately 44.2 million barrels of storage capacity. The company was incorporated in 1999 and is headquartered in San Antonio, Texas.

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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