Head-To-Head Review: Able Energy (OTCMKTS:ABLE) vs. Valero Energy (NYSE:VLO)

Able Energy (OTCMKTS:ABLE) and Valero Energy (NYSE:VLO) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Risk & Volatility

Able Energy has a beta of 12.7, suggesting that its share price is 1,170% more volatile than the S&P 500. Comparatively, Valero Energy has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Able Energy and Valero Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Able Energy	N/A	N/A	N/A
Valero Energy	0.62%	5.76%	2.62%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Able Energy and Valero Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Able Energy	0	0	0	0	0.00
Valero Energy	0	4	11	2	2.88

Valero Energy has a consensus price target of $156.73, suggesting a potential downside of 3.15%. Given Able Energy’s higher possible upside, equities research analysts clearly believe Able Energy is more favorable than Valero Energy.

Earnings & Valuation

This table compares Able Energy and Valero Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Able Energy	N/A	N/A	N/A	N/A	N/A
Valero Energy	$129.88 billion	0.39	$2.77 billion	$2.40	67.43

Valero Energy has higher revenue and earnings than Able Energy.

Institutional & Insider Ownership

78.7% of Valero Energy shares are owned by institutional investors. 0.4% of Valero Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Valero Energy beats Able Energy on 9 of the 11 factors compared between the two stocks.

About Able Energy

Able Energy, Inc., through its subsidiaries, engages in the retail distribution of home heating oil, propane gas, kerosene, and diesel fuels to residential and commercial customers in the United States. It also offers heating, ventilation, and air conditioning installation and repair services. In addition, the company markets other petroleum products to commercial customers, including on-road and off-road diesel fuel, gasoline, and lubricants. Further, it involves in the retail sale of food, merchandise, and personal services, as well as provides onsite and mobile vehicle repair, and services and maintenance to professional and leisure driver through a network of 10 travel plazas located in Pennsylvania, New Jersey, New York, and Virginia. Able Energy, Inc. was incorporated in 1997 and is based in Rockaway, New Jersey.

About Valero Energy

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending and Conventional Blendstock for Oxygenate Blending gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils. It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company owns and operates renewable diesel and ethanol plants, as well as produces renewable diesel and naphtha under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distiller grains, syrup, and inedible distillers corn oil to animal feed customers. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.