Head to Head Comparison: BP p.l.c. (NYSE:BP) vs. CVR Refining, (CVRR)

CVR Refining, (NYSE: CVRR) and BP p.l.c. (NYSE:BP) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Institutional and Insider Ownership

11.0% of CVR Refining, shares are held by institutional investors. Comparatively, 10.1% of BP p.l.c. shares are held by institutional investors. 1.0% of BP p.l.c. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

CVR Refining, has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, BP p.l.c. has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Dividends

BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.5%. CVR Refining, does not pay a dividend. BP p.l.c. pays out 207.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current recommendations and price targets for CVR Refining, and BP p.l.c., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVR Refining, 1 5 0 0 1.83
BP p.l.c. 3 5 12 0 2.45

CVR Refining, presently has a consensus target price of $9.67, suggesting a potential upside of 8.01%. BP p.l.c. has a consensus target price of $36.58, suggesting a potential downside of 0.01%. Given CVR Refining,’s higher probable upside, research analysts clearly believe CVR Refining, is more favorable than BP p.l.c..

Earnings and Valuation

This table compares CVR Refining, and BP p.l.c.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CVR Refining, $5.19 billion 0.25 $230.60 million $0.36 24.86
BP p.l.c. $209.85 billion 0.57 $19.97 billion $1.15 31.81

BP p.l.c. has higher revenue and earnings than CVR Refining,. CVR Refining, is trading at a lower price-to-earnings ratio than BP p.l.c., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CVR Refining, and BP p.l.c.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVR Refining, 1.02% 3.99% 2.25%
BP p.l.c. 1.74% 3.64% 1.34%

Summary

BP p.l.c. beats CVR Refining, on 10 of the 16 factors compared between the two stocks.

About CVR Refining,

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.

About BP p.l.c.

BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.

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