Northern Tier Energy (NYSE: NTI) and CVR Energy (NYSE:CVI) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Earnings & Valuation

This table compares Northern Tier Energy and CVR Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Northern Tier Energy N/A N/A N/A N/A N/A
CVR Energy $5.54 billion 0.28 $313.00 million $0.28 64.00

CVR Energy has higher revenue and earnings than Northern Tier Energy.

Analyst Recommendations

This is a summary of current recommendations and price targets for Northern Tier Energy and CVR Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northern Tier Energy 0 0 0 0 N/A
CVR Energy 0 2 0 0 2.00

CVR Energy has a consensus target price of $14.50, suggesting a potential downside of 19.08%. Given CVR Energy’s higher possible upside, analysts clearly believe CVR Energy is more favorable than Northern Tier Energy.

Insider and Institutional Ownership

98.5% of CVR Energy shares are held by institutional investors. 82.0% of CVR Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Northern Tier Energy and CVR Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northern Tier Energy 1.69% 12.03% 4.34%
CVR Energy 0.44% 2.10% 0.88%

Dividends

CVR Energy pays an annual dividend of $2.00 per share and has a dividend yield of 11.2%. Northern Tier Energy does not pay a dividend. CVR Energy pays out 714.3% 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 Energy has raised its dividend for 2 consecutive years.

Summary

CVR Energy beats Northern Tier Energy on 6 of the 10 factors compared between the two stocks.

About Northern Tier Energy

Northern Tier Energy LP is a downstream energy limited partnership. The Company has refining, retail and logistics operations that serve the Petroleum Administration for Defense District II (PADD II) region of the United States. It operates through two segments: the refining business and the retail business. Its refining segment consists of over 97,800 barrels per stream day refinery located in St. Paul Park, Minnesota. Its refineries process light, heavy, sweet and sour crudes into refined products. It also owns storage and transportation assets. The retail segment operates over 170 convenience stores and supports over 110 franchised convenience stores, which are operated under the SuperAmerica brand. These convenience stores are located throughout Minnesota, Wisconsin and South Dakota and sell various grades of gasoline and diesel, tobacco products and immediately consumable items, such as beverages, prepared food and a range of snacks and prepackaged items.

About CVR Energy

CVR Energy, Inc. (CVR Energy) is a holding company. The Company is engaged in the petroleum refining and nitrogen fertilizer manufacturing through its holdings in CVR Refining LP (CVR Refining or the Refining Partnership) and CVR Partners LP (CVR Partners or the Nitrogen Fertilizer Partnership). It operates under two business segments: petroleum (the petroleum and related businesses operated by the Refining Partnership) and nitrogen fertilizer (the nitrogen fertilizer business operated by the Nitrogen Fertilizer Partnership). The Company’s Refining Partnership is an independent petroleum refiner and marketer of transportation fuels. Its Nitrogen Fertilizer Partnership produces and markets nitrogen fertilizers in the form of urea and ammonium nitrate (UAN) and ammonia. The petroleum business consists of a coking medium-sour crude oil refinery in Coffeyville, Kansas and a crude oil refinery in Wynnewood, Oklahoma.

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