Valero Energy (NYSE:VLO – Get Free Report) and OPAL Fuels (NASDAQ:OPAL – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Insider and Institutional Ownership
78.7% of Valero Energy shares are owned by institutional investors. Comparatively, 12.2% of OPAL Fuels shares are owned by institutional investors. 0.4% of Valero Energy shares are owned by company insiders. Comparatively, 85.7% of OPAL Fuels shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Valero Energy and OPAL Fuels”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Valero Energy | $122.69 billion | 0.91 | $2.35 billion | $24.10 | 16.05 |
| OPAL Fuels | $348.98 million | 0.93 | $14.75 million | ($0.01) | -185.00 |
Valero Energy has higher revenue and earnings than OPAL Fuels. OPAL Fuels is trading at a lower price-to-earnings ratio than Valero Energy, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Valero Energy has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, OPAL Fuels has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Valero Energy and OPAL Fuels, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valero Energy | 1 | 8 | 9 | 2 | 2.60 |
| OPAL Fuels | 2 | 1 | 0 | 0 | 1.33 |
Valero Energy currently has a consensus target price of $335.12, indicating a potential downside of 13.37%. OPAL Fuels has a consensus target price of $2.40, indicating a potential upside of 29.73%. Given OPAL Fuels’ higher probable upside, analysts plainly believe OPAL Fuels is more favorable than Valero Energy.
Profitability
This table compares Valero Energy and OPAL Fuels’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Valero Energy | 5.17% | 26.74% | 11.92% |
| OPAL Fuels | 0.65% | 15.54% | 0.22% |
Summary
Valero Energy beats OPAL Fuels on 11 of the 15 factors compared between the two stocks.
About Valero Energy
Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending and Conventional Blendstock for Oxygenate Blending gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils. It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company owns and operates renewable diesel and ethanol plants, as well as produces renewable diesel and naphtha under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distiller grains, syrup, and inedible distillers corn oil to animal feed customers. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.
About OPAL Fuels
OPAL Fuels Inc., together with its subsidiaries, engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company engages in the generation and sale of renewable power to utilities. OPAL Fuels Inc. is based in White Plains, New York.
Receive News & Ratings for Valero Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Valero Energy and related companies with MarketBeat.com's FREE daily email newsletter.
