WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Valero Energy Corporation generates 6238% more annual revenue ($117.84B vs $1.86B). SGU leads profitability with a 5.3% profit margin vs 3.6%. SGU trades at a lower P/E of 4.8x. SGU earns a higher WallStSmart Score of 66/100 (B-).

SGU

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 7.0Value: 5.7Quality: 5.3
Piotroski: 6/9

VLO

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 4.3Quality: 7.5
Piotroski: 5/9Altman Z: 4.17
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SGUSignificantly Overvalued (-67.4%)

Margin of Safety

-67.4%

Fair Value

$7.67

Current Price

$12.61

$4.94 premium

UndervaluedFair: $7.67Overvalued

Intrinsic value data unavailable for VLO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SGU5 strengths · Avg: 9.0/10
P/E RatioValuation
4.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Return on EquityProfitability
24.4%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

EPS GrowthGrowth
32.1%8/10

Earnings expanding 32.1% YoY

VLO4 strengths · Avg: 9.3/10
EPS GrowthGrowth
317.9%10/10

Earnings expanding 317.9% YoY

Altman Z-ScoreHealth
4.1710/10

Safe zone — low bankruptcy risk

Market CapQuality
$73.39B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.23B8/10

Generating 1.2B in free cash flow

Areas to Watch

SGU4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Market CapQuality
$405.50M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Free Cash FlowQuality
$-9.06M2/10

Negative free cash flow — burning cash

VLO2 concerns · Avg: 2.5/10
Profit MarginProfitability
3.6%3/10

3.6% margin — thin

PEG RatioValuation
4.082/10

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 EPS Growth, Altman Z-Score, Market Cap.

Bear Case : SGU

The primary concerns for SGU are Revenue Growth, Market Cap, Profit Margin.

Bear Case : VLO

The primary concerns for VLO are Profit Margin, PEG Ratio. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

VLO carries more volatility with a beta of 0.55 — expect wider price swings.

VLO is growing revenue faster at 6.6% — sustainability is the question.

VLO generates stronger free cash flow (1.2B), providing more financial flexibility.

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

Bottom Line

SGU scores higher overall (66/100 vs 59/100). 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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