Valero Energy (NYSE:VLO – Get Free Report) and San Juan Basin Royalty Trust (NYSE:SJT – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Insider & Institutional Ownership
78.7% of Valero Energy shares are held by institutional investors. Comparatively, 10.4% of San Juan Basin Royalty Trust shares are held by institutional investors. 0.4% of Valero Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Valero Energy has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, San Juan Basin Royalty Trust has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Valuation and Earnings
This table compares Valero Energy and San Juan Basin Royalty Trust”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Valero Energy | $122.69 billion | 0.98 | $2.35 billion | $24.10 | 17.39 |
| San Juan Basin Royalty Trust | $10,000.00 | 15,735.54 | -$390,000.00 | ($0.01) | -337.60 |
Valero Energy has higher revenue and earnings than San Juan Basin Royalty Trust. San Juan Basin Royalty Trust is trading at a lower price-to-earnings ratio than Valero Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Valero Energy and San Juan Basin Royalty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Valero Energy | 8.44% | 47.50% | 21.03% |
| San Juan Basin Royalty Trust | N/A | -37.45% | -29.01% |
Analyst Recommendations
This is a breakdown of current recommendations for Valero Energy and San Juan Basin Royalty Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valero Energy | 2 | 8 | 9 | 2 | 2.52 |
| San Juan Basin Royalty Trust | 1 | 0 | 0 | 0 | 1.00 |
Valero Energy presently has a consensus price target of $379.94, suggesting a potential downside of 9.36%. Given Valero Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Valero Energy is more favorable than San Juan Basin Royalty Trust.
Summary
Valero Energy beats San Juan Basin Royalty Trust on 13 of the 15 factors compared between the two stocks.
About Valero Energy
Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending and Conventional Blendstock for Oxygenate Blending gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils. It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company owns and operates renewable diesel and ethanol plants, as well as produces renewable diesel and naphtha under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distiller grains, syrup, and inedible distillers corn oil to animal feed customers. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.
About San Juan Basin Royalty Trust
San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest in Southland’s oil and natural gas interests in properties located in the San Juan Basin in northwestern New Mexico. It also owns subject interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net-producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico. The company was founded in 1980 and is based in Dallas, Texas.
Receive News & Ratings for Valero Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Valero Energy and related companies with MarketBeat.com's FREE daily email newsletter.
