WallStSmart

Star Gas Partners LP (SGU)vsValero Energy Corporation (VLO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Valero Energy Corporation generates 6424% more annual revenue ($115.94B vs $1.78B). SGU leads profitability with a 3.7% profit margin vs 2.0%. SGU trades at a lower P/E of 7.0x. VLO earns a higher WallStSmart Score of 51/100 (C-).

SGU

Hold

50

out of 100

Grade: D+

Growth: 4.0Profit: 5.0Value: 8.3Quality: 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

SGUUndervalued (+83.8%)

Margin of Safety

+83.8%

Fair Value

$79.09

Current Price

$12.51

$66.58 discount

UndervaluedFair: $79.09Overvalued
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

SGU4 strengths · Avg: 9.3/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

EPS GrowthGrowth
28.8%8/10

Earnings expanding 28.8% 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

SGU4 concerns · Avg: 2.5/10
Market CapQuality
$398.24M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

Revenue GrowthGrowth
-7.8%2/10

Revenue declined 7.8%

Free Cash FlowQuality
$-59.75M2/10

Negative free cash flow — burning cash

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 : SGU

The strongest argument for SGU centers on P/E Ratio, Price/Book, Return on Equity.

Bull Case : VLO

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

Bear Case : SGU

The primary concerns for SGU are Market Cap, Profit Margin, Revenue Growth. Thin 3.7% margins leave little buffer for downturns.

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

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

VLO is growing revenue faster at -2.1% — sustainability is the question.

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

Monitor OIL & GAS REFINING & MARKETING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

VLO scores higher overall (51/100 vs 50/100). SGU offers better value entry with a 83.8% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Star Gas Partners LP

ENERGY · OIL & GAS REFINING & MARKETING · USA

Star Group, LP sells home heating and air conditioning products and services to residential and commercial heating oil and propane customers in the United States. The company is headquartered in Stamford, Connecticut.

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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