HF Sinclair (NYSE:DINO – Get Free Report) and Western Midstream Partners (NYSE:WES – Get Free Report) are both large-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Risk & Volatility
HF Sinclair has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Western Midstream Partners has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for HF Sinclair and Western Midstream Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HF Sinclair | 1 | 7 | 6 | 2 | 2.56 |
| Western Midstream Partners | 0 | 6 | 3 | 2 | 2.64 |
HF Sinclair currently has a consensus price target of $106.50, suggesting a potential downside of 15.27%. Western Midstream Partners has a consensus price target of $49.89, suggesting a potential upside of 11.85%. Given Western Midstream Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Western Midstream Partners is more favorable than HF Sinclair.
Dividends
HF Sinclair pays an annual dividend of $2.10 per share and has a dividend yield of 1.7%. Western Midstream Partners pays an annual dividend of $3.72 per share and has a dividend yield of 8.3%. HF Sinclair pays out 20.0% of its earnings in the form of a dividend. Western Midstream Partners pays out 117.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HF Sinclair has raised its dividend for 3 consecutive years and Western Midstream Partners has raised its dividend for 5 consecutive years. Western Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
88.3% of HF Sinclair shares are owned by institutional investors. Comparatively, 84.8% of Western Midstream Partners shares are owned by institutional investors. 0.3% of HF Sinclair shares are owned by company insiders. Comparatively, 0.0% of Western Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares HF Sinclair and Western Midstream Partners”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HF Sinclair | $26.87 billion | 0.83 | $579.00 million | $10.48 | 11.99 |
| Western Midstream Partners | $4.33 billion | 4.25 | $1.18 billion | $3.18 | 14.03 |
Western Midstream Partners has lower revenue, but higher earnings than HF Sinclair. HF Sinclair is trading at a lower price-to-earnings ratio than Western Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares HF Sinclair and Western Midstream Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HF Sinclair | 6.13% | 18.21% | 9.96% |
| Western Midstream Partners | 29.44% | 33.13% | 8.74% |
Summary
Western Midstream Partners beats HF Sinclair on 10 of the 17 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 Western Midstream Partners
Western Midstream Partners, LP, together with its subsidiaries, operates as a midstream energy company primarily in the United States. It is involved in gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil; and gathering and disposing produced water. The company also buys and sells natural gas, NGLs, and condensate. It operates assets located in Texas, New Mexico, the Rocky Mountains, and North-central Pennsylvania. Western Midstream Holdings, LLC operates as the general partner of the company. The company was formerly known as Western Gas Equity Partners, LP and changed its name to Western Midstream Partners, LP in February 2019. Western Midstream Partners, LP was incorporated in 2007 and is based in The Woodlands, Texas.
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