Head to Head Comparison: CVR Refining (CVRR) versus Suburban Propane Partners (SPH)
CVR Refining (NYSE: CVRR) and Suburban Propane Partners (NYSE:SPH) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
CVR Refining pays an annual dividend of $3.76 per share and has a dividend yield of 22.8%. Suburban Propane Partners pays an annual dividend of $2.40 per share and has a dividend yield of 9.0%. CVR Refining pays out 515.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suburban Propane Partners pays out 393.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CVR Refining has raised its dividend for 3 consecutive years. CVR Refining is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
12.8% of CVR Refining shares are held by institutional investors. Comparatively, 25.8% of Suburban Propane Partners shares are held by institutional investors. 0.6% of Suburban Propane Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares CVR Refining and Suburban Propane Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CVR Refining||$4.43 billion||0.55||$15.30 million||$0.73||22.60|
|Suburban Propane Partners||$1.19 billion||1.37||$37.99 million||$0.61||43.49|
Suburban Propane Partners has lower revenue, but higher earnings than CVR Refining. CVR Refining is trading at a lower price-to-earnings ratio than Suburban Propane Partners, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for CVR Refining and Suburban Propane Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Suburban Propane Partners||0||1||1||0||2.50|
CVR Refining currently has a consensus target price of $11.50, suggesting a potential downside of 30.30%. Suburban Propane Partners has a consensus target price of $26.00, suggesting a potential downside of 2.00%. Given Suburban Propane Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Suburban Propane Partners is more favorable than CVR Refining.
This table compares CVR Refining and Suburban Propane Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Suburban Propane Partners||3.20%||5.81%||1.70%|
Volatility & Risk
CVR Refining has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Suburban Propane Partners has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.
Suburban Propane Partners beats CVR Refining on 9 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 Suburban Propane Partners
Suburban Propane Partners, L.P. is a marketer and distributor of a range of products. The Company specializes in the distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets. The Company’s segments include Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. In support of its marketing and distribution operations, the Company installs and services a range of home comfort equipment, particularly in the areas of heating and ventilation. The Company conducts its business through Suburban Propane, L.P., which operates its propane business and assets (the Operating Partnership), and its direct and indirect subsidiaries. As of September 24, 2016, it had sold approximately 414.8 million gallons of propane and 30.9 million gallons of fuel oil and refined fuels to retail customers. The Company owns and operates a propane storage facility in Elk Grove, California.
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