Reviewing CVR Refining (CVRR) and PBF Energy (PBF)

PBF Energy (NYSE: PBF) and CVR Refining (NYSE:CVRR) are both mid-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for PBF Energy and CVR Refining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Energy 4 5 5 0 2.07
CVR Refining 0 5 1 0 2.17

PBF Energy presently has a consensus target price of $30.11, indicating a potential downside of 13.30%. CVR Refining has a consensus target price of $12.10, indicating a potential downside of 29.86%. Given PBF Energy’s higher probable upside, equities research analysts clearly believe PBF Energy is more favorable than CVR Refining.

Institutional & Insider Ownership

12.8% of CVR Refining shares are held by institutional investors. 2.6% of PBF Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares PBF Energy and CVR Refining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PBF Energy 1.14% 2.35% 0.78%
CVR Refining 1.98% 7.90% 4.44%

Valuation & Earnings

This table compares PBF Energy and CVR Refining’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PBF Energy $15.92 billion 0.24 $170.81 million $2.00 17.37
CVR Refining $4.43 billion 0.57 $15.30 million $0.73 23.63

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

Dividends

PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 3.5%. CVR Refining pays an annual dividend of $3.76 per share and has a dividend yield of 21.8%. PBF Energy pays out 60.0% of its earnings in the form of a dividend. CVR Refining pays out 515.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

PBF Energy has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, CVR Refining has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

PBF Energy Company Profile

PBF Energy Inc. (PBF Energy) is a holding company. The Company is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company operates through two segments: Refining and Logistics. It sells its products throughout the Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other regions of the United States and Canada, and ships products to other international destinations. As of December 31, 2016, it owned and operated five domestic oil refineries and related assets. As of December 31, 2016, its refineries had a combined processing capacity, known as throughput, of approximately 900,000 barrels per day (bpd) and a weighted-average Nelson Complexity Index of approximately 12.2. As of December 31, 2016, the Company owned and operated five refineries providing geographic and market diversity.

CVR Refining Company Profile

CVR Refining, LP is an independent downstream energy limited partnership with refining and related logistics assets that operates in the mid-continent region. The Company is a petroleum refiner. It owned and operated a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas with a rated capacity of 115,000 barrels per calendar day (bpcd) and a complex crude oil refinery in Wynnewood, Oklahoma with a rated capacity of 70,000 bpcd capable of processing 20,000 bpcd of light sour crude oils (within its rated capacity of 70,000 bpcd), as of December 31, 2016. In addition, it also controlled and operated supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of crude oil gathering tank farms, approximately 6.4 million barrels of owned and leased crude oil storage and over 4.5 million barrels of combined refined products and feedstocks storage capacity, as of December 31, 2016.

Receive News & Ratings for PBF Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PBF Energy and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply