Delek US (NYSE:DK – Get Free Report) and Prairie Operating (NASDAQ:PROP – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Institutional and Insider Ownership
97.0% of Delek US shares are held by institutional investors. Comparatively, 34.3% of Prairie Operating shares are held by institutional investors. 3.6% of Delek US shares are held by company insiders. Comparatively, 3.1% of Prairie Operating shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Delek US has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Prairie Operating has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Delek US | 1.86% | 109.03% | 6.44% |
| Prairie Operating | -13.02% | 46.53% | 5.51% |
Earnings and Valuation
This table compares Delek US and Prairie Operating”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Delek US | $12.06 billion | 0.40 | -$22.80 million | $3.56 | 21.92 |
| Prairie Operating | $343.01 million | 0.13 | $32.05 million | ($2.05) | -0.20 |
Prairie Operating has lower revenue, but higher earnings than Delek US. Prairie Operating is trading at a lower price-to-earnings ratio than Delek US, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Delek US and Prairie Operating, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Delek US | 0 | 7 | 5 | 1 | 2.54 |
| Prairie Operating | 2 | 1 | 1 | 0 | 1.75 |
Delek US currently has a consensus target price of $65.45, indicating a potential downside of 16.13%. Prairie Operating has a consensus target price of $2.50, indicating a potential upside of 509.76%. Given Prairie Operating’s higher probable upside, analysts plainly believe Prairie Operating is more favorable than Delek US.
Summary
Delek US beats Prairie Operating on 12 of the 15 factors compared between the two stocks.
About Delek US
Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates through Refining, Logistics, and Retail segments. The Refining segment processes crude oil and other feedstock for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminal. It owns and operates refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, as well as biodiesel facilities in Crossett, Arkansas, Cleburne, Texas, and New Albany, Mississippi. The Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products, as well as disposes and recycles water for third parties. It owns or leases crude oil transportation pipelines, refined product pipelines, crude oil gathering systems, and associated crude oil storage tanks; and owns and operates light product distribution terminals, as well as markets light products using third-party terminals. The Retail segment owns and leases convenience store sites located primarily in West Texas and New Mexico. Its convenience stores offer various grades of gasoline and diesel under the DK or Alon brand; and food products and service, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise, as well as money orders to the public primarily under the 7-Eleven and DK or Alon brand names. It serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, government, and independent retail fuel operators. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee.
About Prairie Operating
Prairie Operating Co., an independent energy company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company holds assets in the Denver-Julesburg Basin in Colorado; and the Niobrara and Codell formations. Prairie Operating Co. is based in Houston Texas.
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