Reviewing Alon USA Partners, (NYSE:ALDW) and Suncor Energy (SU)

Suncor Energy (NYSE: SU) and Alon USA Partners, (NYSE:ALDW) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares Suncor Energy and Alon USA Partners,’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Suncor Energy $24.16 billion 2.16 $7.35 billion $1.22 25.75
Alon USA Partners, $2.04 billion 0.32 $136.33 million $0.71 14.55

Suncor Energy has higher revenue and earnings than Alon USA Partners,. Alon USA Partners, is trading at a lower price-to-earnings ratio than Suncor Energy , indicating that it is currently the more affordable of the two stocks.

Dividends

Suncor Energy pays an annual dividend of $0.95 per share and has a dividend yield of 3.0%. Alon USA Partners, pays an annual dividend of $1.40 per share and has a dividend yield of 13.6%. Suncor Energy pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alon USA Partners, pays out 197.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suncor Energy has increased its dividend for 2 consecutive years.

Insider and Institutional Ownership

65.6% of Suncor Energy shares are owned by institutional investors. Comparatively, 7.0% of Alon USA Partners, shares are owned by institutional investors. 1.0% of Suncor Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Suncor Energy and Alon USA Partners,, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suncor Energy 0 3 14 1 2.89
Alon USA Partners, 0 2 3 0 2.60

Suncor Energy currently has a consensus price target of $42.86, suggesting a potential upside of 36.40%. Alon USA Partners, has a consensus price target of $12.25, suggesting a potential upside of 18.59%. Given Suncor Energy ‘s stronger consensus rating and higher probable upside, analysts clearly believe Suncor Energy is more favorable than Alon USA Partners,.

Volatility & Risk

Suncor Energy has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Alon USA Partners, has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Profitability

This table compares Suncor Energy and Alon USA Partners,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suncor Energy 8.85% 4.52% 2.29%
Alon USA Partners, 2.20% 40.06% 5.91%

Summary

Suncor Energy beats Alon USA Partners, on 14 of the 18 factors compared between the two stocks.

Suncor Energy Company Profile

Suncor Energy Inc. (Suncor) is an integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. Suncor also conducts energy trading activities.

Alon USA Partners, Company Profile

Alon USA Partners, LP (Alon) is engaged principally in the business of operating a crude oil refinery in Big Spring, Texas. The Company had a crude oil throughput capacity of 73,000 barrels per day, which the Company referred to as its Big Spring refinery, as of December 31, 2016. The Company refines crude oil into finished products, which the Company markets primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to retail convenience stores and other third-party distributors. Its Big Spring refinery is located on 1,306 acres in the Permian Basin in West Texas. Major processes at its Big Spring refinery include fluid catalytic cracking, naphtha reforming, vacuum distillation, hydrotreating, aromatic extraction and alkylation. The Company is managed and operated by Alon USA Partners GP, LLC (General Partner), an indirect subsidiary of Alon USA Energy, Inc. (Alon Energy), which is its parent company.

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