Delek US (NYSE: DK) and YPF (NYSE:YPF) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.
Delek US pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. YPF pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Delek US pays out 79.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. YPF pays out 5.3% of its earnings in the form of a dividend.
Delek US has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, YPF has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Delek US and YPF, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Delek US presently has a consensus price target of $46.23, indicating a potential downside of 10.47%. YPF has a consensus price target of $27.70, indicating a potential upside of 62.57%. Given YPF’s higher probable upside, analysts clearly believe YPF is more favorable than Delek US.
Earnings and Valuation
This table compares Delek US and YPF’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Delek US||$7.27 billion||0.60||$288.80 million||$1.26||40.98|
|YPF||$15.27 billion||0.44||$745.33 million||$1.90||8.97|
YPF has higher revenue and earnings than Delek US. YPF is trading at a lower price-to-earnings ratio than Delek US, indicating that it is currently the more affordable of the two stocks.
This table compares Delek US and YPF’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
95.8% of Delek US shares are owned by institutional investors. Comparatively, 26.7% of YPF shares are owned by institutional investors. 1.4% of Delek US shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
YPF beats Delek US on 9 of the 17 factors compared between the two stocks.
Delek US Company Profile
Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company's Refining segment processes crude oil and other purchased feedstocks for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminals. This segment owns and operates four independent refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana. This segment also owns and operates two biodiesel facilities in Crossett, Arkansas and Cleburne, Texas; and a heavy crude oil refinery in Bakersfield, California. Its Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products for third parties. This segment owns or leases capacity on approximately 461 miles of crude oil transportation pipelines, approximately 406 miles of refined product pipelines, an approximately 600-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 7.3 million barrels of active shell capacity, as well as owns and operates nine light product terminals, and markets light products using third-party terminals. The company's Retail segment owns and leases 302 convenience store sites located primarily in Texas and New Mexico. This segment's convenience stores offer various grades of gasoline and diesel under the Alon brand name; and food products and service, tobacco products, beverages, and general merchandise, as well as money orders to the public under the 7-Eleven and Alon brand names. The company serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, independent retail fuel operators, and the United States government. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee.
YPF Company Profile
YPF Sociedad Anonima, an energy company, operates in the oil and gas upstream and downstream activities in Argentina. It engages in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas (LPG). The company is also involved in the refining, marketing, transportation, and distribution of oil, petroleum products, petroleum derivatives, petrochemicals, LPG, and bio-fuels, as well as in gas separation and natural gas distribution operations. As of December 31, 2016, it had interests in approximately 110 oil and gas fields; proved reserves of approximately 592 million barrels (mmbbl) of oil; and approximately 2,924 billion cubic feet of gas. The company also had a retail distribution network of 1,547 YPF-branded service stations; 23 exploration permits, including 20 onshore and 3 offshore exploration permits, as well as 110 production concessions; and 32 crude oil treatment plants and 9 pumping plants. In addition, it owns three refineries with annual refining capacity of approximately 116 mmbbl; approximately 2,700 kilometers of crude oil pipelines with approximately 640,000 barrels of aggregate daily transportation capacity of refined products; and crude oil tankage of approximately 7 mmbbl, as well as maintains terminal facilities at five Argentine ports. Additionally, the company participates in 3 power generation plants with an aggregate installed capacity of 1,622 megawatts; provides telecommunications services; and engages in the production, industrialization, processing, marketing, preparation, transportation, and storage of grains and its derivatives. It also sells diesel, fertilizers, lubricants, agrochemicals, and ensiling bags, as well as other products; and supplies fuels, lubricants, coal, asphalts, and paraffin and derivatives. The company was founded in 1977 and is headquartered in Buenos Aires, Argentina.
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