WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Valero Energy Corporation generates 7565% more annual revenue ($146.53B vs $1.91B). VLO leads profitability with a 8.8% profit margin vs 4.5%. SGU trades at a lower P/E of 5.7x. VLO earns a higher WallStSmart Score of 80/100 (B+).

SGU

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 5.5Value: 5.7Quality: 5.3
Piotroski: 6/9

VLO

Strong Buy

80

out of 100

Grade: B+

Growth: 7.3Profit: 8.5Value: 7.0Quality: 7.5
Piotroski: 5/9Altman Z: 4.17
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SGUSignificantly Overvalued (-59.3%)

Margin of Safety

-59.3%

Fair Value

$8.06

Current Price

$13.18

$5.12 premium

UndervaluedFair: $8.06Overvalued

Intrinsic value data unavailable for VLO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SGU4 strengths · Avg: 9.0/10
P/E RatioValuation
5.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
17.2%8/10

17.2% revenue growth

EPS GrowthGrowth
32.1%8/10

Earnings expanding 32.1% YoY

VLO6 strengths · Avg: 9.8/10
P/E RatioValuation
9.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
46.3%10/10

Every $100 of equity generates 46 in profit

Revenue GrowthGrowth
46.5%10/10

Revenue surging 46.5% year-over-year

EPS GrowthGrowth
577.0%10/10

Earnings expanding 577.0% YoY

Altman Z-ScoreHealth
4.1710/10

Safe zone — low bankruptcy risk

Market CapQuality
$111.46B9/10

Large-cap with strong market position

Areas to Watch

SGU3 concerns · Avg: 2.3/10
Market CapQuality
$424.58M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.5%3/10

4.5% margin — thin

Operating MarginProfitability
-10.0%1/10

Operating margin of -10.0%

VLO0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : SGU

The strongest argument for SGU centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 17.2% demonstrates continued momentum.

Bull Case : VLO

The strongest argument for VLO centers on P/E Ratio, Return on Equity, Revenue Growth. Revenue growth of 46.5% demonstrates continued momentum.

Bear Case : SGU

The primary concerns for SGU are Market Cap, Profit Margin, Operating Margin. Thin 4.5% margins leave little buffer for downturns.

Bear Case : VLO

No major red flags identified for VLO, but monitor valuation.

Key Dynamics to Monitor

SGU profiles as a growth stock while VLO is a hypergrowth play — different risk/reward profiles.

VLO carries more volatility with a beta of 0.59 — expect wider price swings.

VLO is growing revenue faster at 46.5% — sustainability is the question.

VLO generates stronger free cash flow (6.7B), providing more financial flexibility.

Bottom Line

VLO scores higher overall (80/100 vs 58/100) and 46.5% revenue growth. 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.

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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