Icahn Enterprises L.P. (IEP) vs Valero Energy Corporation (VLO)

Icahn Enterprises L.P. and Valero Energy Corporation are both Oil & Gas Refining & Marketing companies. Valero Energy Corporation is the larger, with a market value of $109.1B against $4.9B — 22.1× the size. Icahn Enterprises L.P. has negative trailing earnings, so its P/E is not meaningful; Valero Energy Corporation trades at 16.1×. Valero Energy Corporation grew revenue faster over the last twelve months: 12.6% against 10.6%. Valero Energy Corporation has the higher net margin (5.17% vs −4.86%) and the higher return on invested capital (19.7% vs 1.84%). Both pay a dividend; Icahn Enterprises L.P. yields more (31.1% vs 2.99%). Across the 20 metrics below, Valero Energy Corporation leads on 13 and Icahn Enterprises L.P. on 7.

Valuation

Metric IEP VLO Oil & Gas Refining & Marketing median
P/E n/m 16.06 15.04
P/S 0.44 0.82 0.41
P/B 2.17 4.03 1.87
Price to free cash flow n/m 12.14 8.78
EV/EBITDA 8.91 8.86 7.94
EV/Sales 0.60 0.84 0.59
Earnings yield (10.63%) 6.23% 6.15%
Free cash flow yield (5.39%) 8.24% 10.47%

Profitability

Metric IEP VLO Oil & Gas Refining & Marketing median
Gross margin 14.49% 8.03% 12.22%
Operating margin 1.07% 7.18% 5.35%
Net margin (4.86%) 5.17% 2.08%
Free cash flow margin (2.37%) 6.73% 4.25%
Return on equity (18.50%) 26.10% 11.39%
Return on assets (3.71%) 11.61% 5.22%
Return on invested capital 1.84% 19.71% 11.54%

Growth

Metric IEP VLO Oil & Gas Refining & Marketing median
Revenue growth (TTM) 10.62% 12.62% 13.37%
EPS growth (last fiscal year) 44.68% (11.77%) —
Revenue growth, 5-year CAGR 9.54% 13.58% 12.77%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric IEP VLO Oil & Gas Refining & Marketing median
Debt to equity 2.98 0.40 0.44
Current ratio 2.87 1.64 1.32
Net debt to EBITDA 1.12 0.94 2.07

Dividend

Metric IEP VLO Oil & Gas Refining & Marketing median
Dividend yield 31.12% 2.99% 3.64%
Payout ratio — 0.14 0.14

Size

Metric IEP VLO Oil & Gas Refining & Marketing median
Market cap 4.93b 109.13b 4.12b

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