Comparing BP Prudhoe Bay Royalty Trust (BPT) and CVR Refining (CVRR)

BP Prudhoe Bay Royalty Trust (NYSE:BPT) and CVR Refining (NYSE:CVRR) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares BP Prudhoe Bay Royalty Trust and CVR Refining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BP Prudhoe Bay Royalty Trust 98.84% 13,824.51% 9,815.40%
CVR Refining 6.16% 26.00% 14.85%

Analyst Recommendations

This is a summary of recent recommendations for BP Prudhoe Bay Royalty Trust and CVR Refining, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BP Prudhoe Bay Royalty Trust 0 0 0 0 N/A
CVR Refining 2 4 1 0 1.86

CVR Refining has a consensus price target of $20.60, indicating a potential upside of 43.06%. Given CVR Refining’s higher possible upside, analysts plainly believe CVR Refining is more favorable than BP Prudhoe Bay Royalty Trust.

Volatility and Risk

BP Prudhoe Bay Royalty Trust has a beta of -0.48, suggesting that its stock price is 148% less volatile than the S&P 500. Comparatively, CVR Refining has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Valuation and Earnings

This table compares BP Prudhoe Bay Royalty Trust and CVR Refining’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BP Prudhoe Bay Royalty Trust $78.19 million 6.91 $77.03 million N/A N/A
CVR Refining $5.66 billion 0.38 $88.80 million $0.60 24.00

CVR Refining has higher revenue and earnings than BP Prudhoe Bay Royalty Trust.

Institutional & Insider Ownership

6.1% of BP Prudhoe Bay Royalty Trust shares are owned by institutional investors. Comparatively, 13.9% of CVR Refining shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

BP Prudhoe Bay Royalty Trust pays an annual dividend of $5.52 per share and has a dividend yield of 21.9%. CVR Refining pays an annual dividend of $3.60 per share and has a dividend yield of 25.0%. CVR Refining pays out 600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

CVR Refining beats BP Prudhoe Bay Royalty Trust on 8 of the 13 factors compared between the two stocks.

BP Prudhoe Bay Royalty Trust Company Profile

BP Prudhoe Bay Royalty Trust operates as a grantor trust in the United States. The company holds overriding royalty interest comprising a non-operational interest in minerals in the Prudhoe Bay oil field located on the North Slope of Alaska. The Prudhoe Bay field extends approximately 12 miles by 27 miles and contains approximately 150,000 gross productive acres. As of December 31, 2017, its estimated proved reserves were 9.070 million barrels of oil and condensate of which 9.047 million barrels are proved developed reserves; and 0.023 million barrels are proved undeveloped reserves. BP Prudhoe Bay Royalty Trust was founded in 1989 and is based in Houston, Texas.

CVR Refining Company Profile

CVR Refining, LP operates as an independent petroleum refiner and marketer of transportation fuels in the United States. The company owns and operates a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas; and a complex crude oil refinery in Wynnewood, Oklahoma. It also controls and operates logistics assets, including approximately 570 miles of owned and leased pipelines; approximately 130 crude oil transports; a network of crude oil gathering tank farms; and approximately 6.4 million barrels of owned and leased crude oil storage capacity, as well as approximately 4.6 million barrels of combined refined products and feedstocks storage capacity. In addition, the company owns 170,000 barrels per day pipeline system that transports crude oil from Broome Station facility to Coffeyville refinery; approximately 1.5 million barrels of crude oil storage capacity, which supports the gathering system and Coffeyville refinery; approximately 0.9 million barrels of crude oil storage capacity at Wynnewood refinery; and approximately 1.5 million barrels of crude oil storage capacity in Cushing, Oklahoma, as well as leases crude oil storage capacity of approximately 2.3 million barrels in Cushing and approximately 0.2 million barrels in Duncan, Oklahoma. CVR Refining GP, LLC operates as the general partner of CVR Refining, LP. The company was founded in 2012 and is based in Sugar Land, Texas. CVR Refining, LP is a subsidiary of CVR Energy, Inc.

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