Sunoco (NYSE:SUN) and HollyFrontier (NYSE:HFC) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
Profitability
This table compares Sunoco and HollyFrontier's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Sunoco | 1.73% | 22.04% | 2.73% |
HollyFrontier | -3.34% | 0.93% | 0.49% |
Earnings & Valuation
This table compares Sunoco and HollyFrontier's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Sunoco | $16.60 billion | 0.20 | $313 million | $2.27 | 14.85 |
HollyFrontier | $17.49 billion | 0.31 | $772.39 million | $4.90 | 6.89 |
HollyFrontier has higher revenue and earnings than Sunoco. HollyFrontier is trading at a lower price-to-earnings ratio than Sunoco, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
24.1% of Sunoco shares are owned by institutional investors. Comparatively, 84.4% of HollyFrontier shares are owned by institutional investors. 0.4% of HollyFrontier shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Sunoco has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500. Comparatively, HollyFrontier has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Sunoco and HollyFrontier, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Sunoco | 1 | 2 | 5 | 0 | 2.50 |
HollyFrontier | 2 | 8 | 5 | 0 | 2.20 |
Sunoco presently has a consensus target price of $31.1250, indicating a potential downside of 7.70%. HollyFrontier has a consensus target price of $35.3077, indicating a potential upside of 4.62%. Given HollyFrontier's higher probable upside, analysts plainly believe HollyFrontier is more favorable than Sunoco.
Dividends
Sunoco pays an annual dividend of $3.30 per share and has a dividend yield of 9.8%. HollyFrontier pays an annual dividend of $1.40 per share and has a dividend yield of 4.1%. Sunoco pays out 145.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HollyFrontier pays out 28.6% of its earnings in the form of a dividend. Sunoco has increased its dividend for 1 consecutive years and HollyFrontier has increased its dividend for 1 consecutive years.
Summary
HollyFrontier beats Sunoco on 8 of the 15 factors compared between the two stocks.