Sunoco LP (SUN) vs Valero Energy Corporation (VLO)

Sunoco LP 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 $15.5B — 7.0× the size. Valero Energy Corporation trades at the lower P/E: 16.1× against 16.5×. Sunoco LP grew revenue faster over the last twelve months: 83.3% against 12.6%. Valero Energy Corporation has the higher net margin (5.17% vs 1.57%) and the higher return on invested capital (19.7% vs 5.64%). Both pay a dividend; Sunoco LP yields more (5.56% vs 2.99%). Across the 23 metrics below, Valero Energy Corporation leads on 12 and Sunoco LP on 11.

Valuation

Metric SUN VLO Oil & Gas Refining & Marketing median
P/E 16.50 16.06 15.04
P/S 0.26 0.82 0.41
P/B 1.50 4.03 1.87
Price to free cash flow 6.08 12.14 8.78
EV/EBITDA 7.94 8.86 7.94
EV/Sales 0.58 0.84 0.59
Earnings yield 6.06% 6.23% 6.15%
Free cash flow yield 16.43% 8.24% 10.47%

Profitability

Metric SUN VLO Oil & Gas Refining & Marketing median
Gross margin 11.93% 8.03% 12.22%
Operating margin 4.76% 7.18% 5.35%
Net margin 1.57% 5.17% 2.08%
Free cash flow margin 4.25% 6.73% 4.25%
Return on equity 11.39% 26.10% 11.39%
Return on assets 2.81% 11.61% 5.22%
Return on invested capital 5.64% 19.71% 11.54%

Growth

Metric SUN VLO Oil & Gas Refining & Marketing median
Revenue growth (TTM) 83.34% 12.62% 13.37%
EPS growth (last fiscal year) (62.00%) (11.77%) —
Revenue growth, 5-year CAGR 18.67% 13.58% 12.77%
Net income growth, 5-year CAGR 18.32% 0.00% 0.00%

Health

Metric SUN VLO Oil & Gas Refining & Marketing median
Debt to equity 1.59 0.40 0.44
Current ratio 1.29 1.64 1.32
Net debt to EBITDA 7.57 0.94 2.07

Dividend

Metric SUN VLO Oil & Gas Refining & Marketing median
Dividend yield 5.56% 2.99% 3.64%
Payout ratio — 0.14 0.14

Size

Metric SUN VLO Oil & Gas Refining & Marketing median
Market cap 15.53b 109.13b 4.12b

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