HighPeak Energy (NASDAQ:HPK – Get Free Report) and Delek US (NYSE:DK – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Risk and Volatility
HighPeak Energy has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Delek US has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Earnings & Valuation
This table compares HighPeak Energy and Delek US”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HighPeak Energy | $862.88 million | 1.27 | $18.96 million | ($0.79) | -10.97 |
| Delek US | $10.72 billion | 0.40 | -$22.80 million | $3.56 | 19.68 |
HighPeak Energy has higher earnings, but lower revenue than Delek US. HighPeak Energy is trading at a lower price-to-earnings ratio than Delek US, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares HighPeak Energy and Delek US’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HighPeak Energy | -10.52% | -1.44% | -0.71% |
| Delek US | 1.86% | 109.03% | 6.44% |
Dividends
HighPeak Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.8%. Delek US pays an annual dividend of $1.02 per share and has a dividend yield of 1.5%. HighPeak Energy pays out -20.3% of its earnings in the form of a dividend. Delek US pays out 28.7% 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. HighPeak Energy has raised its dividend for 1 consecutive years and Delek US has raised its dividend for 2 consecutive years. HighPeak Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of recent ratings for HighPeak Energy and Delek US, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HighPeak Energy | 1 | 1 | 0 | 0 | 1.50 |
| Delek US | 0 | 8 | 5 | 1 | 2.50 |
Delek US has a consensus target price of $75.00, indicating a potential upside of 7.03%. Given Delek US’s stronger consensus rating and higher probable upside, analysts plainly believe Delek US is more favorable than HighPeak Energy.
Insider and Institutional Ownership
24.1% of HighPeak Energy shares are held by institutional investors. Comparatively, 97.0% of Delek US shares are held by institutional investors. 5.6% of HighPeak Energy shares are held by insiders. Comparatively, 3.6% of Delek US shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Delek US beats HighPeak Energy on 13 of the 18 factors compared between the two stocks.
About HighPeak Energy
HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.
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.
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