Delek US (NYSE:DK) & TotalEnergies (NYSE:TTE) Critical Analysis

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

Dividends

Delek US pays an annual dividend of $1.02 per share and has a dividend yield of 4.8%. TotalEnergies pays an annual dividend of $2.84 per share and has a dividend yield of 4.5%. Delek US pays out -9.2% of its earnings in the form of a dividend. TotalEnergies pays out 47.8% 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. Delek US has increased its dividend for 2 consecutive years. Delek US is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

97.0% of Delek US shares are held by institutional investors. Comparatively, 16.5% of TotalEnergies shares are held by institutional investors. 1.9% of Delek US shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Delek US and TotalEnergies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Delek US	-6.10%	-63.88%	-6.64%
TotalEnergies	6.60%	14.47%	6.09%

Earnings & Valuation

This table compares Delek US and TotalEnergies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Delek US	$11.85 billion	0.11	-$560.40 million	($11.11)	-1.92
TotalEnergies	$214.55 billion	0.70	$15.76 billion	$5.94	10.55

TotalEnergies has higher revenue and earnings than Delek US. Delek US is trading at a lower price-to-earnings ratio than TotalEnergies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Delek US and TotalEnergies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Delek US	4	6	2	0	1.83
TotalEnergies	0	4	8	3	2.93

Delek US presently has a consensus price target of $17.60, suggesting a potential downside of 17.62%. TotalEnergies has a consensus price target of $69.36, suggesting a potential upside of 10.65%. Given TotalEnergies’ stronger consensus rating and higher possible upside, analysts clearly believe TotalEnergies is more favorable than Delek US.

Volatility & Risk

Delek US has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, TotalEnergies has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Summary

TotalEnergies beats Delek US on 12 of the 18 factors compared between the two stocks.

About Delek US

Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates through Refining, Logistics, and Retail segments. The Refining segment processes crude oil and other feedstock 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 terminal. It owns and operates refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, as well as biodiesel facilities in Crossett, Arkansas, Cleburne, Texas, and New Albany, Mississippi. The Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products, as well as disposes and recycles water for third parties. It owns or leases crude oil transportation pipelines, refined product pipelines, crude oil gathering systems, and associated crude oil storage tanks; and owns and operates light product distribution terminals, as well as markets light products using third-party terminals. The Retail segment owns and leases convenience store sites located primarily in West Texas and New Mexico. Its convenience stores offer various grades of gasoline and diesel under the DK or Alon brand; and food products and service, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise, as well as money orders to the public primarily under the 7-Eleven and DK or Alon brand names. It serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, government, and independent retail fuel operators. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee.

About TotalEnergies

TotalEnergies SE, a multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally. It operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. The Exploration & Production segment is involved in the exploration and production of oil and natural gas. The Integrated LNG segment comprises the integrated gas chain, including upstream and midstream liquified natural gas (LNG) activities, as well as biogas, hydrogen, and gas trading activities. The Integrated Power segment includes generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity. The Refining & Chemicals segment consists of refining, petrochemicals, and specialty chemicals. This segment also includes oil supply, trading, and marine shipping activities. The Marketing & Services segment supplies and markets petroleum products. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was founded in 1924 and is headquartered in Courbevoie, France.