Synthesis Energy Systems (OTCMKTS:SYNE) and Valero Energy (NYSE:VLO) Financial Analysis

Synthesis Energy Systems (OTCMKTS:SYNE) and Valero Energy (NYSE:VLO) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Earnings and Valuation

This table compares Synthesis Energy Systems and Valero Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synthesis Energy Systems	N/A	N/A	N/A	N/A	N/A
Valero Energy	$123.78 billion	0.39	$2.77 billion	$2.40	65.33

Valero Energy has higher revenue and earnings than Synthesis Energy Systems.

Profitability

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

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

Institutional & Insider Ownership

78.7% of Valero Energy shares are owned by institutional investors. 12.3% of Synthesis Energy Systems shares are owned by company insiders. Comparatively, 0.0% of Valero Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Synthesis Energy Systems has a beta of -39.22, suggesting that its share price is 4,022% less 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.

Analyst Ratings

This is a summary of current ratings and target prices for Synthesis Energy Systems and Valero Energy, as reported by MarketBeat.

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

Valero Energy has a consensus price target of $158.87, indicating a potential upside of 1.33%. Given Valero Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Valero Energy is more favorable than Synthesis Energy Systems.

Summary

Valero Energy beats Synthesis Energy Systems on 10 of the 11 factors compared between the two stocks.

About Synthesis Energy Systems

Synthesis Energy Systems, Inc., an energy company, engages in licensing and commercializing SES gasification technology for the production of synthesis gas in China and internationally. Synthesis Energy Systems, Inc. was founded in 2003 and is headquartered in Houston, Texas.

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.