Contrasting HF Sinclair (NYSE:DINO) and Occidental Petroleum (NYSE:OXY)

Occidental Petroleum (NYSE:OXY) and HF Sinclair (NYSE:DINO) are both large-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Risk and Volatility

Occidental Petroleum has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500. Comparatively, HF Sinclair has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

88.7% of Occidental Petroleum shares are owned by institutional investors. Comparatively, 88.3% of HF Sinclair shares are owned by institutional investors. 0.5% of Occidental Petroleum shares are owned by company insiders. Comparatively, 0.3% of HF Sinclair shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Occidental Petroleum pays an annual dividend of $1.12 per share and has a dividend yield of 1.8%. HF Sinclair pays an annual dividend of $2.10 per share and has a dividend yield of 1.7%. Occidental Petroleum pays out 17.3% of its earnings in the form of a dividend. HF Sinclair pays out 20.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Occidental Petroleum has raised its dividend for 5 consecutive years and HF Sinclair has raised its dividend for 3 consecutive years. Occidental Petroleum is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Occidental Petroleum and HF Sinclair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Occidental Petroleum	28.36%	15.31%	5.69%
HF Sinclair	6.13%	18.21%	9.96%

Valuation and Earnings

This table compares Occidental Petroleum and HF Sinclair”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Occidental Petroleum	$22.07 billion	2.74	$2.33 billion	$6.46	9.38
HF Sinclair	$26.87 billion	0.83	$579.00 million	$10.48	11.91

Occidental Petroleum has higher earnings, but lower revenue than HF Sinclair. Occidental Petroleum is trading at a lower price-to-earnings ratio than HF Sinclair, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Occidental Petroleum and HF Sinclair, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Occidental Petroleum	0	15	12	0	2.44
HF Sinclair	1	7	6	2	2.56

Occidental Petroleum presently has a consensus price target of $66.08, indicating a potential upside of 9.04%. HF Sinclair has a consensus price target of $106.50, indicating a potential downside of 14.67%. Given Occidental Petroleum’s higher possible upside, equities research analysts clearly believe Occidental Petroleum is more favorable than HF Sinclair.

Summary

Occidental Petroleum beats HF Sinclair on 10 of the 18 factors compared between the two stocks.

About Occidental Petroleum

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, and North Africa. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; and vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

About HF Sinclair

HF Sinclair Corporation operates as an independent energy company. The company produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, specialty and modified asphalt, and others. It owns and operates refineries located in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming; and markets its refined products principally in the Southwest United States and Rocky Mountains, Pacific Northwest, and in other neighboring Plains states. In addition, the company supplies fuels to approximately 1,500 independent Sinclair branded stations and licenses the use of the Sinclair brand at approximately 300 additional locations. Further, it produces base oils and other specialized lubricants; and provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum sector. HF Sinclair Corporation is headquartered in Dallas, Texas.