Critical Comparison: Neste Oyj (OTCMKTS:NTOIY) vs. HF Sinclair (NYSE:DINO)

Neste Oyj (OTCMKTS:NTOIY) and HF Sinclair (NYSE:DINO) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for Neste Oyj and HF Sinclair, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neste Oyj	0	1	0	0	2.00
HF Sinclair	0	6	7	0	2.54

Neste Oyj currently has a consensus target price of $18.00, indicating a potential upside of 94.17%. HF Sinclair has a consensus target price of $55.82, indicating a potential upside of 23.38%. Given Neste Oyj’s higher probable upside, research analysts plainly believe Neste Oyj is more favorable than HF Sinclair.

Dividends

Neste Oyj pays an annual dividend of $0.25 per share and has a dividend yield of 2.7%. HF Sinclair pays an annual dividend of $2.00 per share and has a dividend yield of 4.4%. Neste Oyj pays out 45.9% of its earnings in the form of a dividend. HF Sinclair pays out 24.8% 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. HF Sinclair is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Neste Oyj and HF Sinclair”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neste Oyj	N/A	N/A	N/A	$0.54	17.30
HF Sinclair	$31.44 billion	0.28	$1.59 billion	$8.08	5.60

HF Sinclair has higher revenue and earnings than Neste Oyj. HF Sinclair is trading at a lower price-to-earnings ratio than Neste Oyj, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Neste Oyj and HF Sinclair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neste Oyj	N/A	N/A	N/A
HF Sinclair	3.80%	11.85%	6.77%

Insider & Institutional Ownership

0.0% of Neste Oyj shares are held by institutional investors. Comparatively, 88.3% of HF Sinclair shares are held by institutional investors. 0.3% of HF Sinclair shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

HF Sinclair beats Neste Oyj on 11 of the 13 factors compared between the two stocks.

About Neste Oyj

Neste Oyj provides renewable diesel and sustainable aviation fuel in Finland, and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. The company operates in four segments: Renewable Products, Oil Products, Marketing & Services, and Others. The Renewable Products segment produces, markets, and sells renewable diesel, sustainable aviation fuel, renewable solvents, and feedstock for bioplastics to wholesale markets. The Oil Products segment produces, markets, and sells diesel, gasoline, aviation and marine fuels, light and heavy fuel oils, and gasoline components, as well as special fuels, such as small-engine gasoline, solvents, liquid gases, and bitumen. This segment serves retailers and distributors, oil majors and trading companies, petrochemicals companies, and companies marketing lubricants and solvents, as well as road transportation, non-road uses, aviation and marine sectors. The Marketing & Services segment markets and sells cleaner fuels and oil products, and associated services to private motorists, transport companies, customers in aviation, shipping, industrial and agricultural sectors, municipalities, farmers, and heating oil customers through a network of service stations, as well as direct sales and distributors. The Others segment offers engineering solutions. The company was formerly known as Neste Oil Oyj and changed its name to Neste Oyj in June 2015. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland.

About HF Sinclair

HF Sinclair Corporation operates as an independent energy company. The company produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, specialty and modified asphalt, and others. It owns and operates refineries located in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming; and markets its refined products principally in the Southwest United States and Rocky Mountains, Pacific Northwest, and in other neighboring Plains states. In addition, the company supplies fuels to approximately 1,500 independent Sinclair branded stations and licenses the use of the Sinclair brand at approximately 300 additional locations. Further, it produces base oils and other specialized lubricants; and provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum sector. HF Sinclair Corporation is headquartered in Dallas, Texas.