Contrasting Valero Energy (NYSE:VLO) & DCC (OTCMKTS:DCCPY)

Valero Energy (NYSE:VLO) and DCC (OTCMKTS:DCCPY) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Earnings and Valuation

This table compares Valero Energy and DCC’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valero Energy	$144.77 billion	0.39	$8.84 billion	$24.73	6.90
DCC	N/A	N/A	N/A	$0.76	28.58

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

Profitability

This table compares Valero Energy and DCC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valero Energy	6.10%	31.62%	14.29%
DCC	N/A	N/A	N/A

Insider & Institutional Ownership

78.7% of Valero Energy shares are owned by institutional investors. 0.5% of Valero Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Valero Energy and DCC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valero Energy	1	3	10	1	2.73
DCC	0	0	0	0	N/A

Valero Energy currently has a consensus price target of $172.40, indicating a potential upside of 1.01%. Given Valero Energy’s higher possible upside, research analysts clearly believe Valero Energy is more favorable than DCC.

Summary

Valero Energy beats DCC on 10 of the 11 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 DCC

DCC plc provides sales, marketing, and support services worldwide. The company operates through DCC Energy, DCC Healthcare, and DCC Technology segments. It sells and markets liquefied petroleum gas (LPG), refrigerants, and natural gas; markets, sells, and retails transport and commercial fuels, heating oils, and related products and services; operates retail petrol stations; resells fuel cards; distributes oil; and provides logistics services. It also offers products and services to healthcare providers, and health and beauty brand owners; contract manufacturing services to the health and beauty sector; nutrition products, such as vitamins and health supplements; beauty products; and product development, formulation, manufacturing, and packaging services. In, addition it distributes consumer technology products, including smart home products, peripherals and software, and accessories, as well as provides supply chain services. The company was founded in 1976 and is headquartered in Dublin, Ireland.