CVR Refining (NYSE: CVRR) and China Petroleum & Chemical (NYSE:SNP) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Institutional & Insider Ownership

12.8% of CVR Refining shares are held by institutional investors. Comparatively, 0.9% of China Petroleum & Chemical shares are held by institutional investors. 92.2% of China Petroleum & Chemical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares CVR Refining and China Petroleum & Chemical’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CVR Refining $4.43 billion 0.58 $15.30 million $0.72 24.38
China Petroleum & Chemical $290.79 billion 0.35 $7.02 billion $7.20 11.68

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

Analyst Recommendations

This is a summary of recent recommendations for CVR Refining and China Petroleum & Chemical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVR Refining 0 5 1 0 2.17
China Petroleum & Chemical 0 2 4 0 2.67

CVR Refining currently has a consensus price target of $12.10, indicating a potential downside of 31.05%. Given CVR Refining’s higher probable upside, equities analysts clearly believe CVR Refining is more favorable than China Petroleum & Chemical.

Profitability

This table compares CVR Refining and China Petroleum & Chemical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVR Refining 1.98% 7.90% 4.44%
China Petroleum & Chemical N/A 4.48% 2.54%

Risk and Volatility

CVR Refining has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, China Petroleum & Chemical has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Dividends

CVR Refining pays an annual dividend of $3.76 per share and has a dividend yield of 21.4%. China Petroleum & Chemical pays an annual dividend of $3.55 per share and has a dividend yield of 4.2%. CVR Refining pays out 522.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Petroleum & Chemical pays out 49.3% of its earnings in the form of a dividend.

Summary

CVR Refining beats China Petroleum & Chemical on 9 of the 16 factors compared between the two stocks.

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.

China Petroleum & Chemical Company Profile

China Petroleum & Chemical Corporation is a China-based energy and chemical company. The Company’s segments include Exploration and Development segment, Refining segment, Marketing and Distribution segment, Chemicals segment, and Corporate and Others segment. Exploration and Development segment explores and develops oil fields, as well as produces crude oil and natural gas. Refining segment processes and purifies crude oil, which is sourced from Exploration and Development segment and external suppliers. Marketing and Distribution segment owns and operates oil depots and service stations in China. Chemical segment manufactures and sells petrochemical products, derivative petrochemical products and other chemical products to external customers.

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