CVR Energy (CVI) & The Competition Critical Contrast

CVR Energy (NYSE:CVI) is one of 1,050 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its rivals? We will compare CVR Energy to related companies based on the strength of its analyst recommendations, institutional ownership, risk, dividends, earnings, valuation and profitability.

Institutional & Insider Ownership

98.9% of CVR Energy shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 70.8% of CVR Energy shares are held by company insiders. Comparatively, 15.4% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares CVR Energy and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVR Energy	0.81%	-15.21%	-3.33%
CVR Energy Competitors	-472.90%	19.17%	6.33%

Risk and Volatility

CVR Energy has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, CVR Energy’s rivals have a beta of -3.72, meaning that their average stock price is 472% less volatile than the S&P 500.

Dividends

CVR Energy pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. CVR Energy pays out 58.8% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.5% and pay out -122.0% of their earnings in the form of a dividend. CVR Energy has increased its dividend for 1 consecutive years. CVR Energy lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of recent ratings for CVR Energy and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVR Energy	4	3	0	1	1.75
CVR Energy Competitors	5963	26927	40752	2404	2.52

CVR Energy currently has a consensus price target of $45.75, suggesting a potential downside of 21.45%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 17.50%. Given CVR Energy’s rivals stronger consensus rating and higher possible upside, analysts plainly believe CVR Energy has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares CVR Energy and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CVR Energy	$7.16 billion	$27.00 million	85.65
CVR Energy Competitors	$14.74 billion	$5.51 billion	0.47

CVR Energy’s rivals have higher revenue and earnings than CVR Energy. CVR Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

CVR Energy rivals beat CVR Energy on 9 of the 15 factors compared.

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.