CVR Energy (NYSE:CVI) versus Teekay (NYSE:TK) Critical Review

CVR Energy (NYSE:CVI) and Teekay (NYSE:TK) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

98.9% of CVR Energy shares are held by institutional investors. Comparatively, 46.7% of Teekay shares are held by institutional investors. 70.8% of CVR Energy shares are held by insiders. Comparatively, 2.4% of Teekay shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

CVR Energy pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Teekay pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. CVR Energy pays out 58.8% of its earnings in the form of a dividend. Teekay pays out 12.0% 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. CVR Energy has raised its dividend for 1 consecutive years and Teekay has raised its dividend for 1 consecutive years. Teekay is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares CVR Energy and Teekay”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVR Energy	$8.47 billion	0.67	$68.36 million	$0.68	83.11
Teekay	$1.15 billion	1.13	$180.50 million	$2.08	7.22

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

Volatility & Risk

CVR Energy has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Teekay has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CVR Energy and Teekay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVR Energy	4	3	0	1	1.75
Teekay	0	0	1	0	3.00

CVR Energy currently has a consensus price target of $45.75, indicating a potential downside of 19.04%. Given CVR Energy’s higher probable upside, research analysts plainly believe CVR Energy is more favorable than Teekay.

Profitability

This table compares CVR Energy and Teekay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVR Energy	N/A	N/A	N/A
Teekay	N/A	N/A	N/A

About CVR Energy

CVR Energy, Inc., together with its subsidiaries, engages in the petroleum refining and marketing, and nitrogen fertilizer manufacturing activities in the United States. It operates in two segments, Petroleum and Nitrogen Fertilizer. The Petroleum segment refines and supplies gasoline, crude oil, distillate, diesel fuel, and other refined products. This segment also owns and operates a coking medium-sour crude oil refinery in southeast Kansas; and a crude oil refinery in Wynnewood, Oklahoma, as well as supporting logistics assets. This segment primarily serves retailers, railroads, farm cooperatives, and other refiners/marketers. The Nitrogen Fertilizer segment owns and operates a nitrogen fertilizer plant in North America that utilizes a pet coke gasification process to produce nitrogen fertilizer products; and a nitrogen fertilizer facility in East Dubuque, Illinois that produces nitrogen fertilizers in the form of ammonia and urea ammonium nitrate (UAN), nitric acid, and liquid and granulated urea. This segment primarily markets UAN products to agricultural customers; and ammonia products to agricultural and industrial customers. The company was founded in 1906 and is based in Sugar Land, Texas. CVR Energy, Inc. is a subsidiary of Icahn Enterprises L.P.

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.