Andeavor (NASDAQ: ANDV) and Alon USA Partners, (NYSE:ALDW) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Valuation and Earnings

This table compares Andeavor and Alon USA Partners,’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Andeavor N/A N/A N/A N/A N/A
Alon USA Partners, $2.04 billion 0.36 $136.33 million $0.71 16.41

Alon USA Partners, has higher revenue and earnings than Andeavor.

Institutional and Insider Ownership

5.3% of Alon USA Partners, shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Andeavor and Alon USA Partners,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Andeavor 1.11% 2.23% 1.48%
Alon USA Partners, 2.20% 40.06% 5.91%

Dividends

Alon USA Partners, pays an annual dividend of $1.40 per share and has a dividend yield of 12.0%. Andeavor does not pay a dividend. Alon USA Partners, pays out 197.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alon USA Partners, has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for Andeavor and Alon USA Partners,, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Andeavor 0 2 2 0 2.50
Alon USA Partners, 0 2 3 0 2.60

Andeavor currently has a consensus target price of $114.67, suggesting a potential upside of 10.52%. Alon USA Partners, has a consensus target price of $12.25, suggesting a potential upside of 5.15%. Given Andeavor’s higher probable upside, analysts clearly believe Andeavor is more favorable than Alon USA Partners,.

Summary

Alon USA Partners, beats Andeavor on 9 of the 12 factors compared between the two stocks.

Andeavor Company Profile

Andeavor, formerly Tesoro Corporation, is an independent petroleum refining, logistics and marketing company. he Company operates through three segments. The Refining operating segment refines crude oil and other feedstocks into transportation fuels, such as gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a range of customers within its markets. The TLLP segment comprises Tesoro Logistics LP’s (TLLP) assets and operations, and includes certain crude oil and natural gas gathering assets, natural gas and natural gas liquids (NGLs) processing assets, and crude oil and refined products terminaling, and transportation. The marketing segment sells transportation fuels through branded and unbranded channels.

Alon USA Partners, Company Profile

Alon USA Partners, LP (Alon) is engaged principally in the business of operating a crude oil refinery in Big Spring, Texas. The Company had a crude oil throughput capacity of 73,000 barrels per day, which the Company referred to as its Big Spring refinery, as of December 31, 2016. The Company refines crude oil into finished products, which the Company markets primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to retail convenience stores and other third-party distributors. Its Big Spring refinery is located on 1,306 acres in the Permian Basin in West Texas. Major processes at its Big Spring refinery include fluid catalytic cracking, naphtha reforming, vacuum distillation, hydrotreating, aromatic extraction and alkylation. The Company is managed and operated by Alon USA Partners GP, LLC (General Partner), an indirect subsidiary of Alon USA Energy, Inc. (Alon Energy), which is its parent company.

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