Contrasting HF Sinclair (NYSE:DINO) and Devon Energy (NYSE:DVN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HF Sinclair	6.13%	18.21%	9.96%
Devon Energy	16.67%	14.93%	7.91%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for HF Sinclair and Devon Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HF Sinclair	1	7	6	2	2.56
Devon Energy	0	3	25	2	2.97

HF Sinclair currently has a consensus target price of $107.50, indicating a potential downside of 12.05%. Devon Energy has a consensus target price of $60.72, indicating a potential upside of 23.52%. Given Devon Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Devon Energy is more favorable than HF Sinclair.

Dividends

HF Sinclair pays an annual dividend of $2.10 per share and has a dividend yield of 1.7%. Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 2.6%. HF Sinclair pays out 20.0% of its earnings in the form of a dividend. Devon Energy pays out 30.4% 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. HF Sinclair has increased its dividend for 3 consecutive years and Devon Energy has increased its dividend for 1 consecutive years.

Valuation and Earnings

This table compares HF Sinclair and Devon Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HF Sinclair	$26.87 billion	0.81	$579.00 million	$10.48	11.66
Devon Energy	$17.19 billion	3.15	$2.64 billion	$4.21	11.68

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

Insider and Institutional Ownership

88.3% of HF Sinclair shares are owned by institutional investors. Comparatively, 69.7% of Devon Energy shares are owned by institutional investors. 0.3% of HF Sinclair shares are owned by insiders. Comparatively, 4.6% of Devon Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

HF Sinclair has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Summary

Devon Energy beats HF Sinclair on 9 of the 17 factors compared between the two stocks.

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.

About Devon Energy

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.