Aegean Marine Petroleum Network (NYSE: ANW) and Valero Energy Corporation (NYSE:VLO) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Analyst Ratings

This is a summary of recent recommendations and price targets for Aegean Marine Petroleum Network and Valero Energy Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aegean Marine Petroleum Network 0 0 3 0 3.00
Valero Energy Corporation 0 10 9 0 2.47

Aegean Marine Petroleum Network presently has a consensus target price of $7.00, indicating a potential upside of 86.67%. Valero Energy Corporation has a consensus target price of $79.06, indicating a potential downside of 4.61%. Given Aegean Marine Petroleum Network’s stronger consensus rating and higher possible upside, analysts clearly believe Aegean Marine Petroleum Network is more favorable than Valero Energy Corporation.

Risk and Volatility

Aegean Marine Petroleum Network has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500. Comparatively, Valero Energy Corporation has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Earnings and Valuation

This table compares Aegean Marine Petroleum Network and Valero Energy Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Aegean Marine Petroleum Network $4.08 billion 0.04 $51.87 million $0.38 9.87
Valero Energy Corporation $75.66 billion 0.48 $2.29 billion $4.61 17.98

Valero Energy Corporation has higher revenue and earnings than Aegean Marine Petroleum Network. Aegean Marine Petroleum Network is trading at a lower price-to-earnings ratio than Valero Energy Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Aegean Marine Petroleum Network pays an annual dividend of $0.08 per share and has a dividend yield of 2.1%. Valero Energy Corporation pays an annual dividend of $2.80 per share and has a dividend yield of 3.4%. Aegean Marine Petroleum Network pays out 21.1% of its earnings in the form of a dividend. Valero Energy Corporation pays out 60.7% 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. Valero Energy Corporation has raised its dividend for 6 consecutive years. Valero Energy Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Aegean Marine Petroleum Network and Valero Energy Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aegean Marine Petroleum Network 0.28% 4.26% 1.55%
Valero Energy Corporation 2.33% 9.87% 4.43%

Insider & Institutional Ownership

68.0% of Aegean Marine Petroleum Network shares are owned by institutional investors. Comparatively, 81.8% of Valero Energy Corporation shares are owned by institutional investors. 0.5% of Valero Energy Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Valero Energy Corporation beats Aegean Marine Petroleum Network on 13 of the 17 factors compared between the two stocks.

About Aegean Marine Petroleum Network

Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company. The Company markets and physically supplies refined marine fuel and lubricants to vessels in port, at sea and on rivers. As a physical supplier, the Company procures marine fuel from refineries, oil producers and other sources, and resells and delivers these fuels from its bunkering vessels to a range of end users. The Company owns and operates a fleet of approximately 50 bunkering vessels. The Company operates over 10 land-based storage facilities. The Company operates a vessel as a floating storage facility with a cargo carrying capacity of approximately 19,900 deadweight tonnage (dwt). The Company provides fueling services to various types of ocean-going and various types of coastal vessels, such as oil tankers, container ships, drybulk carriers, cruise ships, reefers, liquefied natural gas (LNG)/liquefied petroleum gas (LPG) carriers, car carriers and ferries.

About Valero Energy Corporation

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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