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Delek vs. HF Sinclair: Which Refining Stock Has More Upside Potential?
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Key Takeaways
DK reported $638.7 million in second-quarter adjusted EBITDA, supported by stronger refining margins.
DINO generated $1.48 billion in second-quarter adjusted EBITDA, with refining EBITDA more than doubling.
DK's forward P/E is 6.86X, below DINO's 8.45X, while both refiners posted strong results.
Delek US Holdings (DK - Free Report) and HF Sinclair Corporation (DINO - Free Report) are two prominent U.S. refining companies benefiting from tight refined-product markets, strong crack spreads and resilient fuel demand. Both refiners delivered strong second-quarter 2026 results, with higher margins and solid operational execution supporting earnings and cash flow.
Delek US reported second-quarter adjusted EBITDA of $638.7 million, while HF Sinclair generated $1.48 billion. Both companies are also pursuing initiatives to strengthen their businesses and return capital to shareholders. With both refiners benefiting from the favorable industry backdrop, investors may want to compare their recent stock performance, valuation and earnings-estimate trends.
Let's dive deep and closely compare the fundamentals of the two stocks to determine which one has more upside potential.
Share Price Performance
The refining industry has attracted significant investor attention as constrained global supply and strong refined-product demand have supported margins. Both Delek US and HF Sinclair have benefited from this environment, but their one-year stock performances differ. As shown in the chart, DK has gained 129.9% over the past year, compared with DINO’s 108.3%.
Image Source: Zacks Investment Research
DK's performance has been supported by improving refinery operations, advantageous crude access and higher refining margins. The company’s Big Spring refinery has performed well following its turnaround. DK has no further planned turnarounds for the remainder of 2026.
DINO has also benefited from strong refining fundamentals. Its second-quarter crude oil charge averaged 639,680 barrels per day, compared with 615,930 barrels in the prior-year quarter. Refining adjusted EBITDA more than doubled to $1.02 billion from $476 million a year earlier.
Valuation
Valuation is another important metric when comparing the two refining stocks. Despite DK's stronger one-year share-price performance, the stock trades at a lower forward earnings multiple.
Image Source: Zacks Investment Research
DK trades at 6.86X forward price-to-earnings (P/E), compared with 8.45X for DINO. The lower multiple means DK's expected earnings are currently valued at a lower price relative to DINO.
DK's valuation is supported by an improving earnings profile. The company is implementing its Enterprise Optimization Plan, which targets at least $220 million in annualized cash-flow gains. Improvements in refinery reliability, yields and crude flexibility are also supporting the business.
DINO's larger operating platform supports stronger absolute earnings and cash generation. The company generated $1.51 billion in operating cash flow during the second quarter and ended June with $2.26 billion of cash. Its consolidated debt stood at $2.77 billion.
Earnings Estimate Revisions
The direction of analysts' earnings estimates provides another key metric in the comparison. Both companies have witnessed significant upward revisions over the past 60 days, but the magnitude of the increases is considerably different.
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings per share (EPS) has increased 149.68% for DK and 62.43% for DINO. For 2027, the estimates have risen 251.74% for DK and 42.73% for DINO. The current estimates shown in the chart stand at $15.83 for DK's 2026 EPS and $9.70 for 2027, compared with DINO’s $17.51 and $12.28, respectively.
The sharp upward revisions for DK indicate a substantial improvement in analysts' expectations for its earnings outlook. The company's second-quarter adjusted net income was $343.9 million, or $5.48 per share.
DINO also delivered a significant improvement in profitability. Its second-quarter adjusted net income rose to $960 million, or $5.31 per diluted share, from $322 million, or $1.70, in the year-ago period.
Cash Flow and Shareholder Returns
Strong cash generation remains important for refiners because the industry is highly cyclical. Both companies are generating substantial cash and returning capital to shareholders, although their strategies differ.
DK's second-quarter results reflected a significant improvement in cash-flow generation, supported by stronger refining margins and operational execution. The company’s Enterprise Optimization Plan is intended to further improve its cash-flow profile.
DINO has a larger cash-generating platform. The company generated $1.51 billion of operating cash flow in the second quarter and returned $265 million to its shareholders through dividends and share repurchases. HF Sinclair also increased its regular quarterly dividend by 5% to 52.5 cents per share.
DINO is additionally pursuing the separation of its Lubricants & Specialties business into an independent publicly traded company over the next 12-18 months. Management expects the transaction to provide greater strategic focus and capital flexibility for the businesses.
Conclusion
DK holds an advantage in three of the four key metrics examined. Its one-year share-price gain is higher, forward P/E is lower and earnings estimates have experienced substantially stronger upward revisions over the past 60 days. The company's improving refinery operations and Enterprise Optimization Plan provide additional support for its earnings outlook.
DINO, meanwhile, stands out for its larger operating scale, stronger absolute cash generation and diversified business portfolio. The company’s refining, renewables, marketing, lubricants and midstream operations provide multiple sources of earnings, while the increased dividend and share repurchases add to its shareholder-return profile.
DK may be better suited to investors focused on earnings-estimate momentum, valuation and potential upside, while DINO will attract investors prioritizing scale, diversification, cash generation and shareholder distributions. Both Delek US and HF Sinclair sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Delek vs. HF Sinclair: Which Refining Stock Has More Upside Potential?
Key Takeaways
Delek US Holdings (DK - Free Report) and HF Sinclair Corporation (DINO - Free Report) are two prominent U.S. refining companies benefiting from tight refined-product markets, strong crack spreads and resilient fuel demand. Both refiners delivered strong second-quarter 2026 results, with higher margins and solid operational execution supporting earnings and cash flow.
Delek US reported second-quarter adjusted EBITDA of $638.7 million, while HF Sinclair generated $1.48 billion. Both companies are also pursuing initiatives to strengthen their businesses and return capital to shareholders. With both refiners benefiting from the favorable industry backdrop, investors may want to compare their recent stock performance, valuation and earnings-estimate trends.
Let's dive deep and closely compare the fundamentals of the two stocks to determine which one has more upside potential.
Share Price Performance
The refining industry has attracted significant investor attention as constrained global supply and strong refined-product demand have supported margins. Both Delek US and HF Sinclair have benefited from this environment, but their one-year stock performances differ. As shown in the chart, DK has gained 129.9% over the past year, compared with DINO’s 108.3%.
Image Source: Zacks Investment Research
DK's performance has been supported by improving refinery operations, advantageous crude access and higher refining margins. The company’s Big Spring refinery has performed well following its turnaround. DK has no further planned turnarounds for the remainder of 2026.
DINO has also benefited from strong refining fundamentals. Its second-quarter crude oil charge averaged 639,680 barrels per day, compared with 615,930 barrels in the prior-year quarter. Refining adjusted EBITDA more than doubled to $1.02 billion from $476 million a year earlier.
Valuation
Valuation is another important metric when comparing the two refining stocks. Despite DK's stronger one-year share-price performance, the stock trades at a lower forward earnings multiple.
Image Source: Zacks Investment Research
DK trades at 6.86X forward price-to-earnings (P/E), compared with 8.45X for DINO. The lower multiple means DK's expected earnings are currently valued at a lower price relative to DINO.
DK's valuation is supported by an improving earnings profile. The company is implementing its Enterprise Optimization Plan, which targets at least $220 million in annualized cash-flow gains. Improvements in refinery reliability, yields and crude flexibility are also supporting the business.
DINO's larger operating platform supports stronger absolute earnings and cash generation. The company generated $1.51 billion in operating cash flow during the second quarter and ended June with $2.26 billion of cash. Its consolidated debt stood at $2.77 billion.
Earnings Estimate Revisions
The direction of analysts' earnings estimates provides another key metric in the comparison. Both companies have witnessed significant upward revisions over the past 60 days, but the magnitude of the increases is considerably different.
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings per share (EPS) has increased 149.68% for DK and 62.43% for DINO. For 2027, the estimates have risen 251.74% for DK and 42.73% for DINO. The current estimates shown in the chart stand at $15.83 for DK's 2026 EPS and $9.70 for 2027, compared with DINO’s $17.51 and $12.28, respectively.
The sharp upward revisions for DK indicate a substantial improvement in analysts' expectations for its earnings outlook. The company's second-quarter adjusted net income was $343.9 million, or $5.48 per share.
DINO also delivered a significant improvement in profitability. Its second-quarter adjusted net income rose to $960 million, or $5.31 per diluted share, from $322 million, or $1.70, in the year-ago period.
Cash Flow and Shareholder Returns
Strong cash generation remains important for refiners because the industry is highly cyclical. Both companies are generating substantial cash and returning capital to shareholders, although their strategies differ.
DK's second-quarter results reflected a significant improvement in cash-flow generation, supported by stronger refining margins and operational execution. The company’s Enterprise Optimization Plan is intended to further improve its cash-flow profile.
DINO has a larger cash-generating platform. The company generated $1.51 billion of operating cash flow in the second quarter and returned $265 million to its shareholders through dividends and share repurchases. HF Sinclair also increased its regular quarterly dividend by 5% to 52.5 cents per share.
DINO is additionally pursuing the separation of its Lubricants & Specialties business into an independent publicly traded company over the next 12-18 months. Management expects the transaction to provide greater strategic focus and capital flexibility for the businesses.
Conclusion
DK holds an advantage in three of the four key metrics examined. Its one-year share-price gain is higher, forward P/E is lower and earnings estimates have experienced substantially stronger upward revisions over the past 60 days. The company's improving refinery operations and Enterprise Optimization Plan provide additional support for its earnings outlook.
DINO, meanwhile, stands out for its larger operating scale, stronger absolute cash generation and diversified business portfolio. The company’s refining, renewables, marketing, lubricants and midstream operations provide multiple sources of earnings, while the increased dividend and share repurchases add to its shareholder-return profile.
DK may be better suited to investors focused on earnings-estimate momentum, valuation and potential upside, while DINO will attract investors prioritizing scale, diversification, cash generation and shareholder distributions. Both Delek US and HF Sinclair sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.