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

Dividends

Delek US Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Northern Tier Energy does not pay a dividend. Delek US Holdings pays out -25.9% of its earnings in the form of a dividend. Delek US Holdings has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Northern Tier Energy and Delek US Holdings’ gross revenue, earnings per share (EPS) 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
Delek US Holdings $4.58 billion 0.34 $58.00 million ($2.32) -10.72

Delek US Holdings has higher revenue and earnings than Northern Tier Energy.

Analyst Ratings

This is a summary of current recommendations and price targets for Northern Tier Energy and Delek US Holdings, 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
Delek US Holdings 0 12 4 0 2.25

Delek US Holdings has a consensus target price of $24.71, suggesting a potential downside of 0.67%. Given Delek US Holdings’ higher probable upside, analysts clearly believe Delek US Holdings is more favorable than Northern Tier Energy.

Institutional & Insider Ownership

97.0% of Delek US Holdings shares are held by institutional investors. 1.6% of Delek US Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Northern Tier Energy and Delek US Holdings’ 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%
Delek US Holdings -3.15% -4.60% -1.80%

Summary

Delek US Holdings beats Northern Tier Energy on 8 of the 11 factors compared between the two stocks.

Northern Tier Energy Company Profile

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.

Delek US Holdings Company Profile

Delek US Holdings, Inc. is a diversified downstream energy company. The Company has a broad platform consisting of refining, logistics, retail and wholesale marketing, renewables and asphalt operations. It operates through five segments: refining, logistics, asphalt, renewable and retail. Its refining assets consist of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day. The Logistics segment gathers, transports and stores crude oil, as well as markets, distributes transports and stores refined production in the southeast United States and West Texas. Its asphalt operations consist of 14 owned or operated asphalt terminals serving markets from Tennessee to the west coast. Its Renewables segment consists of plants in Texas and Arkansas that produce biodiesel fuel. The Company’s convenience store retail business operates approximately 300 convenience stores.

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