Valero Energy Corporation (NYSE: VLO) is one of 39 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it contrast to its competitors? We will compare Valero Energy Corporation to related businesses based on the strength of its earnings, profitability, institutional ownership, dividends, risk, valuation and analyst recommendations.

Dividends

Valero Energy Corporation pays an annual dividend of $2.80 per share and has a dividend yield of 3.5%. Valero Energy Corporation pays out 60.5% of its earnings in the form of a dividend. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.0% and pay out 584.2% of their earnings in the form of a dividend. Valero Energy Corporation has increased its dividend for 6 consecutive years.

Institutional & Insider Ownership

80.6% of Valero Energy Corporation shares are owned by institutional investors. Comparatively, 47.3% of shares of all “Oil & Gas Refining and Marketing” companies are owned by institutional investors. 0.5% of Valero Energy Corporation shares are owned by insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Valero Energy Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valero Energy Corporation 2.33% 9.93% 4.47%
Valero Energy Corporation Competitors -1.13% 2.01% 1.38%

Analyst Recommendations

This is a summary of current ratings and target prices for Valero Energy Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valero Energy Corporation 0 10 9 0 2.47
Valero Energy Corporation Competitors 369 1751 2164 111 2.46

Valero Energy Corporation presently has a consensus price target of $76.73, indicating a potential downside of 2.73%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 9.09%. Given Valero Energy Corporation’s competitors higher possible upside, analysts clearly believe Valero Energy Corporation has less favorable growth aspects than its competitors.

Risk & Volatility

Valero Energy Corporation has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Valero Energy Corporation’s competitors have a beta of 1.30, suggesting that their average stock price is 30% more volatile than the S&P 500.

Valuation & Earnings

This table compares Valero Energy Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Valero Energy Corporation $79.10 billion $4.86 billion 17.04
Valero Energy Corporation Competitors $45.54 billion $4.41 billion 21.80

Valero Energy Corporation has higher revenue and earnings than its competitors. Valero Energy Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Valero Energy Corporation beats its competitors on 8 of the 15 factors compared.

Valero Energy Corporation Company Profile

Valero Energy Corporation (Valero) is an independent petroleum refiner and ethanol producer. The Company’s segments include refining, ethanol and Valero Energy Partners LP (VLP). The refining segment includes its refining operations and the associated marketing activities. The ethanol segment includes its ethanol operations and the associated marketing activities, and logistics assets that support its ethanol operations. The Company owns logistics assets (crude oil pipelines, refined petroleum product pipelines, terminals, tanks, marine docks, truck rack bays and other assets) that support its refining operations. Some of these assets are owned by VLP, which is a midstream master limited partnership owned by the Company. VLP’s assets include crude oil and refined petroleum products pipeline and terminal systems in the United States Gulf Coast and the United States Mid-Continent regions. Its refineries produce conventional gasolines, premium gasolines and lubricants, among others.

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