Delek US Holdings (NYSE: DK) and SINOPEC Shangai Petrochemical (NYSE:SHI) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
Insider & Institutional Ownership
97.0% of Delek US Holdings shares are owned by institutional investors. Comparatively, 1.0% of SINOPEC Shangai Petrochemical shares are owned by institutional investors. 1.4% of Delek US Holdings shares are owned by insiders. Comparatively, 1.0% of SINOPEC Shangai Petrochemical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Delek US Holdings and SINOPEC Shangai Petrochemical’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Delek US Holdings||$4.58 billion||0.29||$58.00 million||($2.32)||-9.09|
|SINOPEC Shangai Petrochemical||$12.49 billion||0.52||$1.41 billion||$9.28||6.53|
SINOPEC Shangai Petrochemical has higher revenue and earnings than Delek US Holdings. Delek US Holdings is trading at a lower price-to-earnings ratio than SINOPEC Shangai Petrochemical, indicating that it is currently the more affordable of the two stocks.
This table compares Delek US Holdings and SINOPEC Shangai Petrochemical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delek US Holdings||-3.15%||-4.60%||-1.80%|
|SINOPEC Shangai Petrochemical||8.79%||27.54%||20.37%|
This is a summary of current ratings and target prices for Delek US Holdings and SINOPEC Shangai Petrochemical, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delek US Holdings||0||12||4||0||2.25|
|SINOPEC Shangai Petrochemical||1||2||0||0||1.67|
Delek US Holdings currently has a consensus target price of $24.71, suggesting a potential upside of 17.18%. Given Delek US Holdings’ stronger consensus rating and higher possible upside, equities analysts clearly believe Delek US Holdings is more favorable than SINOPEC Shangai Petrochemical.
Volatility & Risk
Delek US Holdings has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500. Comparatively, SINOPEC Shangai Petrochemical has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Delek US Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. SINOPEC Shangai Petrochemical pays an annual dividend of $3.26 per share and has a dividend yield of 5.4%. Delek US Holdings pays out -25.9% of its earnings in the form of a dividend. SINOPEC Shangai Petrochemical pays out 35.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
SINOPEC Shangai Petrochemical beats Delek US Holdings on 8 of the 15 factors compared between the two stocks.
About Delek US Holdings
Delek US Holdings, Inc. is a diversified downstream energy company. The Company has a broad platform consisting of refining, logistics, retail and wholesale marketing, renewables and asphalt operations. It operates through five segments: refining, logistics, asphalt, renewable and retail. Its refining assets consist of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day. The Logistics segment gathers, transports and stores crude oil, as well as markets, distributes transports and stores refined production in the southeast United States and West Texas. Its asphalt operations consist of 14 owned or operated asphalt terminals serving markets from Tennessee to the west coast. Its Renewables segment consists of plants in Texas and Arkansas that produce biodiesel fuel. The Company’s convenience store retail business operates approximately 300 convenience stores.
About SINOPEC Shangai Petrochemical
Sinopec Shanghai Petrochemical Company Limited (Shanghai Petrochemical) is a petrochemical company. The Company and its subsidiaries are principally engaged in processing crude oil into synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products. The Company operates in five operating segments. The synthetic fibres segment produces polyester and acrylic fibers, which are used in the textile and apparel industries. The resins and plastics segment produces polyester chips, polyethylene resins and films, polypropylene resins and polyvinyl alcohol (PVA) granules. The intermediate petrochemicals segment produces p-xylene, benzene and ethylene oxide. The petroleum products segment is equipped with crude oil distillation facilities used to produce vacuum and atmospheric gas oils used as feedstock of the Company’s downstream processing facilities. The trading of petrochemical products segment is engaged in importing and exporting of petrochemical products.
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