Valero Energy vs Chevron Which Is Superior?

Valero Energy Corporation and Chevron Corporation are two prominent players in the energy industry, both listed on the New York Stock Exchange. Valero specializes in refining and marketing petroleum products, while Chevron is a multinational energy corporation involved in all aspects of the oil and gas industry. Investors often compare the two companies' stocks due to their similar market capitalizations and revenue. Understanding key financial indicators and market trends is crucial when evaluating Valero Energy vs Chevron stocks for investment opportunities.

Valero Energy or Chevron?

When comparing Valero Energy and Chevron, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Valero Energy and Chevron.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Valero Energy has a dividend yield of 3.23%, while Chevron has a dividend yield of 4.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Valero Energy reports a 5-year dividend growth of 4.98% year and a payout ratio of 37.69%. On the other hand, Chevron reports a 5-year dividend growth of 6.16% year and a payout ratio of 70.19%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Valero Energy P/E ratio at 11.40 and Chevron's P/E ratio at 16.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Valero Energy P/B ratio is 1.67 while Chevron's P/B ratio is 1.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Valero Energy has seen a 5-year revenue growth of 0.49%, while Chevron's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Valero Energy's ROE at 14.32% and Chevron's ROE at 10.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $131.74 for Valero Energy and $156.70 for Chevron. Over the past year, Valero Energy's prices ranged from $120.21 to $184.79, with a yearly change of 53.72%. Chevron's prices fluctuated between $135.37 and $167.11, with a yearly change of 23.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.