Financial Analysis: Idemitsu Kosan Co.,Ltd. (OTCMKTS:IDKOY) and HF Sinclair (NYSE:DINO)

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

Earnings & Valuation

This table compares HF Sinclair and Idemitsu Kosan Co.,Ltd.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HF Sinclair	$31.44 billion	0.27	$1.59 billion	$8.08	5.48
Idemitsu Kosan Co.,Ltd.	N/A	N/A	N/A	$50.83	0.28

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

Profitability

This table compares HF Sinclair and Idemitsu Kosan Co.,Ltd.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HF Sinclair	3.80%	11.85%	6.77%
Idemitsu Kosan Co.,Ltd.	N/A	N/A	N/A

Dividends

HF Sinclair pays an annual dividend of $2.00 per share and has a dividend yield of 4.5%. Idemitsu Kosan Co.,Ltd. pays an annual dividend of $11.25 per share and has a dividend yield of 78.4%. HF Sinclair pays out 24.8% of its earnings in the form of a dividend. Idemitsu Kosan Co.,Ltd. pays out 22.1% 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. Idemitsu Kosan Co.,Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for HF Sinclair and Idemitsu Kosan Co.,Ltd., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HF Sinclair	0	6	7	0	2.54
Idemitsu Kosan Co.,Ltd.	0	0	0	0	N/A

HF Sinclair currently has a consensus price target of $55.82, indicating a potential upside of 26.09%. Given HF Sinclair’s higher possible upside, research analysts clearly believe HF Sinclair is more favorable than Idemitsu Kosan Co.,Ltd..

Institutional and Insider Ownership

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

Summary

HF Sinclair beats Idemitsu Kosan Co.,Ltd. on 9 of the 12 factors compared between the two stocks.

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.

About Idemitsu Kosan Co.,Ltd.

Idemitsu Kosan Co.,Ltd. engages in the petroleum, basic chemicals, functional materials, power and renewable energy, and resources businesses in Japan and internationally. The company’s Petroleum segment engages in the procurement of crude oil and refining of petroleum products; sale of gasoline, diesel oil, kerosene, automotive lubricants, industrial kerosene, heavy oil, and aviation and marine fuel; and operation of hydrogen stations. Its Basic Chemicals segment manufactures and sells olefins, such as ethylene, propylene, and butadiene; aromatics, including benzene, styrene monomer, mixed xylene, and paraxylene; and other chemicals. The company’s Functional Materials segment researches, develops, manufactures, and sells automotive, industrial, and marine lubricants, as well as grease; engineering plastic, adhesive materials, derivative products, and solvents; electronic materials, such as OLED; asphalt; microbial pesticides, soil amendments, and livestock related materials; and solid state lithium ion battery materials. Its Power and Renewable Energy segment operates thermal power plants; develops and operates renewable energy sources, including solar, wind, and biomass power plants; engages in the supply, wholesale, and retail of electric power; researches, develops, and manufactures CIS thin-film solar modules; and sells solar power systems. The company’s Resources segments explores, develops, and produces oil and gas; produces and sells coal and uranium; operates geothermal power plants; and sale of electric power and steam. Idemitsu Kosan Co.,Ltd. was founded in 1911 and is headquartered in Tokyo, Japan.