Head-To-Head Analysis: CVR Refining (CVRR) & Statoil (STO)

CVR Refining (NYSE:CVRR) and Statoil (NYSE:STO) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Dividends

CVR Refining pays an annual dividend of $2.64 per share and has a dividend yield of 14.9%. Statoil pays an annual dividend of $0.32 per share. CVR Refining pays out 440.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Statoil pays out 23.2% of its earnings in the form of a dividend. Statoil has increased its dividend for 5 consecutive years.

Insider and Institutional Ownership

16.9% of CVR Refining shares are owned by institutional investors. Comparatively, 5.0% of Statoil shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

CVR Refining has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Statoil has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for CVR Refining and Statoil, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVR Refining 2 5 1 0 1.88
Statoil 2 7 2 0 2.00

CVR Refining presently has a consensus price target of $19.75, indicating a potential upside of 11.58%. Statoil has a consensus price target of $21.50, indicating a potential upside of ∞. Given Statoil’s stronger consensus rating and higher possible upside, analysts plainly believe Statoil is more favorable than CVR Refining.

Profitability

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

Net Margins Return on Equity Return on Assets
CVR Refining 4.94% 18.39% 10.45%
Statoil 7.34% 12.32% 4.36%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CVR Refining $5.66 billion 0.46 $88.80 million $0.60 29.50
Statoil $61.19 billion 0.00 $4.59 billion $1.38 N/A

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

Summary

Statoil beats CVR Refining on 9 of the 15 factors compared between the two stocks.

CVR Refining Company Profile

CVR Refining, LP operates as an independent petroleum refiner and marketer of transportation fuels in the United States. The company owns and operates a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas; and a complex crude oil refinery in Wynnewood, Oklahoma. It also controls and operates logistics assets, including approximately 570 miles of owned and leased pipelines; approximately 130 crude oil transports; a network of crude oil gathering tank farms; and approximately 6.4 million barrels of owned and leased crude oil storage capacity, as well as approximately 4.6 million barrels of combined refined products and feedstocks storage capacity. In addition, the company owns 170,000 barrels per day pipeline system that transports crude oil from Broome Station facility to Coffeyville refinery; approximately 1.5 million barrels of crude oil storage capacity, which supports the gathering system and Coffeyville refinery; approximately 0.9 million barrels of crude oil storage capacity at Wynnewood refinery; and approximately 1.5 million barrels of crude oil storage capacity in Cushing, Oklahoma, as well as leases crude oil storage capacity of approximately 2.3 million barrels in Cushing and approximately 0.2 million barrels in Duncan, Oklahoma. CVR Refining GP, LLC operates as the general partner of CVR Refining, LP. The company was founded in 2012 and is based in Sugar Land, Texas. CVR Refining, LP is a subsidiary of CVR Energy, Inc.

Statoil Company Profile

Statoil ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development & Production Norway; Development & Production USA; Development & Production International; Marketing, Midstream & Processing; New Energy Solutions; Technology, Projects & Drilling; Exploration; and Global Strategy & Business Development segments. It also transports, processes, manufactures, markets, and trades oil and gas commodities, such as crude, condensate, gas liquids, products, natural gas, and liquefied natural gas; markets and trades electricity and emission rights; and operates refineries, processing and power plants, and terminals. In addition, the company develops wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2017, it had proved oil and gas reserves of 5,367 million barrels of oil equivalent. The company was formerly known as StatoilHydro ASA and changed its name to Statoil ASA in November 2009. Statoil ASA was founded in 1972 and is headquartered in Stavanger, Norway.

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