CVR Energy (CVI) versus Hess (HES) Financial Review

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CVR Energy and Hess, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVR Energy 0 1 1 0 2.50
Hess 2 8 5 0 2.20

CVR Energy currently has a consensus target price of $46.50, indicating a potential upside of 23.47%. Hess has a consensus target price of $68.64, indicating a potential upside of 30.47%. Given Hess’ higher possible upside, analysts clearly believe Hess is more favorable than CVR Energy.

Valuation & Earnings

This table compares CVR Energy and Hess’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CVR Energy $5.99 billion 0.63 $234.40 million N/A N/A
Hess $5.41 billion 2.88 -$4.07 billion ($4.61) -11.41

CVR Energy has higher revenue and earnings than Hess.

Insider and Institutional Ownership

91.4% of CVR Energy shares are held by institutional investors. Comparatively, 87.5% of Hess shares are held by institutional investors. 82.0% of CVR Energy shares are held by insiders. Comparatively, 12.1% of Hess shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

CVR Energy pays an annual dividend of $3.00 per share and has a dividend yield of 8.0%. Hess pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Hess pays out -21.7% of its earnings in the form of a dividend.

Profitability

This table compares CVR Energy and Hess’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVR Energy 5.84% 11.10% 5.01%
Hess -47.06% -2.65% -1.40%

Risk and Volatility

CVR Energy has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Hess has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Summary

CVR Energy beats Hess on 10 of the 15 factors compared between the two stocks.

CVR Energy Company Profile

CVR Energy, Inc., through its subsidiaries, engages in petroleum refining and nitrogen fertilizer manufacturing activities in the United States. The company operates through, Petroleum and Nitrogen Fertilizer segments. The Petroleum segment refines and markets transportation fuels, such as gasoline, diesel fuel, pet coke, natural gas liquids, slurry, sulfur, gas oil, asphalt, jet fuel, and other products. This segment owns and operates a coking medium-sour crude oil refinery in Coffeyville, Kansas; a crude oil refinery in Wynnewood, Oklahoma; and a crude oil gathering system serving Kansas, Nebraska, Oklahoma, Missouri, Colorado, and Texas. It also owns a proprietary pipeline system that transports crude oil from Caney, Kansas to its refinery; and supplies products through tanker trucks directly to customers located in Coffeyville, Kansas, and Wynnewood, Oklahoma, as well as to customers at throughput terminals on Magellan Midstream Partners, L.P. and NuStar Energy, LP's refined products distribution systems. This segment primarily serves retailers, railroads, farm co-operatives, and other refiners/marketers. The Nitrogen Fertilizer segment operates a nitrogen fertilizer plant in North America that utilizes a pet coke gasification process to produce nitrogen fertilizer products. It markets UAN, an aqueous solution of urea and ammonium nitrate to agricultural customers; and ammonia products to agricultural and industrial customers. CVR Energy, Inc. was founded in 1906 and is based in Sugar Land, Texas.

Hess Company Profile

Hess Corporation, an exploration and production company, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. It operates through two segments, Exploration and Production, and Midstream. The company conducts production operations primarily in the United States, Denmark, the Malaysia/Thailand Joint Development Area, and Malaysia; and exploration activities primarily offshore Guyana, Suriname, Canada, and in the Gulf of Mexico. As of December 31, 2017, it had total proved reserves of 1,154 million barrels of oil equivalent. The company is also involved in crude oil and natural gas gathering, processing of natural gas and the fractionation of NGLs, transportation of crude oil by rail car, terminaling and loading crude oil and natural gas liquids, and the storage and terminaling of propane primarily in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. The company was founded in 1920 and is headquartered in New York, New York.

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