San Juan Basin Royalty Trust (NYSE:SJT – Get Free Report) and Valero Energy (NYSE:VLO – Get Free Report) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Institutional & Insider Ownership
10.4% of San Juan Basin Royalty Trust shares are owned by institutional investors. Comparatively, 78.7% of Valero Energy shares are owned by institutional investors. 0.4% of Valero Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
San Juan Basin Royalty Trust has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Valero Energy has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Dividends
San Juan Basin Royalty Trust pays an annual dividend of $0.27 per share and has a dividend yield of 8.0%. Valero Energy pays an annual dividend of $4.80 per share and has a dividend yield of 1.2%. San Juan Basin Royalty Trust pays out -2,700.0% of its earnings in the form of a dividend. Valero Energy pays out 10.8% 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. Valero Energy has raised its dividend for 4 consecutive years. San Juan Basin Royalty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares San Juan Basin Royalty Trust and Valero Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| San Juan Basin Royalty Trust | $10,000.00 | 15,763.16 | -$390,000.00 | ($0.01) | -338.20 |
| Valero Energy | $153.33 billion | 0.73 | $2.35 billion | $44.46 | 8.74 |
Valero Energy has higher revenue and earnings than San Juan Basin Royalty Trust. San Juan Basin Royalty Trust is trading at a lower price-to-earnings ratio than Valero Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares San Juan Basin Royalty Trust and Valero Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| San Juan Basin Royalty Trust | N/A | -37.45% | -29.01% |
| Valero Energy | 8.44% | 47.50% | 21.03% |
Analyst Ratings
This is a breakdown of recent recommendations for San Juan Basin Royalty Trust and Valero Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| San Juan Basin Royalty Trust | 1 | 0 | 0 | 0 | 1.00 |
| Valero Energy | 2 | 8 | 9 | 2 | 2.52 |
Valero Energy has a consensus price target of $379.94, indicating a potential downside of 2.18%. Given Valero Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Valero Energy is more favorable than San Juan Basin Royalty Trust.
Summary
Valero Energy beats San Juan Basin Royalty Trust on 14 of the 18 factors compared between the two stocks.
About San Juan Basin Royalty Trust
San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest in Southland’s oil and natural gas interests in properties located in the San Juan Basin in northwestern New Mexico. It also owns subject interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net-producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico. The company was founded in 1980 and is based in Dallas, Texas.
About Valero Energy
Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending and Conventional Blendstock for Oxygenate Blending gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils. It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company owns and operates renewable diesel and ethanol plants, as well as produces renewable diesel and naphtha under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distiller grains, syrup, and inedible distillers corn oil to animal feed customers. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.
Receive News & Ratings for San Juan Basin Royalty Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for San Juan Basin Royalty Trust and related companies with MarketBeat.com's FREE daily email newsletter.
