Delek US (NYSE:DK) and Renewable Energy Group (NASDAQ:REGI) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Delek US has a beta of 2.19, suggesting that its share price is 119% more volatile than the S&P 500. Comparatively, Renewable Energy Group has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Profitability
This table compares Delek US and Renewable Energy Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Delek US | -3.66% | -8.86% | -2.14% |
Renewable Energy Group | 22.72% | 13.11% | 9.25% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Delek US and Renewable Energy Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Delek US | 3 | 10 | 2 | 0 | 1.93 |
Renewable Energy Group | 0 | 2 | 8 | 0 | 2.80 |
Delek US currently has a consensus price target of $20.8462, indicating a potential downside of 4.02%. Renewable Energy Group has a consensus price target of $89.1250, indicating a potential upside of 39.74%. Given Renewable Energy Group's stronger consensus rating and higher probable upside, analysts clearly believe Renewable Energy Group is more favorable than Delek US.
Insider and Institutional Ownership
96.2% of Renewable Energy Group shares are owned by institutional investors. 1.4% of Delek US shares are owned by insiders. Comparatively, 3.0% of Renewable Energy Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Delek US and Renewable Energy Group's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Delek US | $9.30 billion | 0.17 | $310.60 million | $3.30 | 6.58 |
Renewable Energy Group | $2.64 billion | 1.07 | $389.73 million | $3.75 | 17.01 |
Renewable Energy Group has lower revenue, but higher earnings than Delek US. Delek US is trading at a lower price-to-earnings ratio than Renewable Energy Group, indicating that it is currently the more affordable of the two stocks.
Summary
Renewable Energy Group beats Delek US on 12 of the 14 factors compared between the two stocks.