WallStSmart

Delek Logistics Partners LP (DKL)vsValero Energy Corporation (VLO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Valero Energy Corporation generates 11341% more annual revenue ($115.94B vs $1.01B). DKL leads profitability with a 17.4% profit margin vs 2.0%. DKL appears more attractively valued with a PEG of 0.77. DKL earns a higher WallStSmart Score of 68/100 (B-).

DKL

Strong Buy

68

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 10.0Quality: 5.0

VLO

Buy

51

out of 100

Grade: C-

Growth: 2.7Profit: 5.5Value: 7.3Quality: 7.0
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DKLUndervalued (+64.7%)

Margin of Safety

+64.7%

Fair Value

$154.44

Current Price

$53.75

$100.69 discount

UndervaluedFair: $154.44Overvalued
VLOUndervalued (+42.4%)

Margin of Safety

+42.4%

Fair Value

$354.28

Current Price

$234.54

$119.74 discount

UndervaluedFair: $354.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DKL5 strengths · Avg: 8.4/10
Return on EquityProfitability
84.8%10/10

Every $100 of equity generates 85 in profit

PEG RatioValuation
0.778/10

Growing faster than its price suggests

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.9%8/10

Revenue surging 21.9% year-over-year

EPS GrowthGrowth
30.7%8/10

Earnings expanding 30.7% YoY

VLO3 strengths · Avg: 8.3/10
Market CapQuality
$72.29B9/10

Large-cap with strong market position

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.81B8/10

Generating 1.8B in free cash flow

Areas to Watch

DKL1 concerns · Avg: 2.0/10
Price/BookValuation
488.6x2/10

Trading at 488.6x book value

VLO4 concerns · Avg: 3.3/10
P/E RatioValuation
31.9x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

PEG RatioValuation
4.212/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DKL

The strongest argument for DKL centers on Return on Equity, PEG Ratio, P/E Ratio. Profitability is solid with margins at 17.4% and operating margin at 11.3%. Revenue growth of 21.9% demonstrates continued momentum.

Bull Case : VLO

The strongest argument for VLO centers on Market Cap, Price/Book, Free Cash Flow.

Bear Case : DKL

The primary concerns for DKL are Price/Book.

Bear Case : VLO

The primary concerns for VLO are P/E Ratio, EPS Growth, Profit Margin. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

DKL profiles as a growth stock while VLO is a value play — different risk/reward profiles.

VLO carries more volatility with a beta of 0.73 — expect wider price swings.

DKL is growing revenue faster at 21.9% — sustainability is the question.

VLO generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

DKL scores higher overall (68/100 vs 51/100), backed by strong 17.4% margins and 21.9% revenue growth. VLO offers better value entry with a 42.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Delek Logistics Partners LP

ENERGY · OIL & GAS REFINING & MARKETING · USA

Delek Logistics Partners, LP owns and operates logistics and marketing assets for crude oil and refined and intermediate products in the United States. The company is headquartered in Brentwood, Tennessee.

Valero Energy Corporation

ENERGY · OIL & GAS REFINING & MARKETING · USA

Valero Energy Corporation is a Fortune 500 international manufacturer and marketer of transportation fuels, other petrochemical products, and power. It is headquartered in San Antonio, Texas, United States.

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