Valero vs Imperial Oil

This page compares Valero Energy Corp. and Imperial Oil Ltd., examining business models, financial performance and market context in a neutral, accessible way. Educational content, not financial advice.

This page compares Valero Energy Corp. and Imperial Oil Ltd., examining business models, financial performance and market context in a neutral, accessible way. Educational content, not financial advic...

Comparison Snapshot

Key Financial Metrics

VLO

Metric

IMO

$61.05B

Market Cap

$57.98B

-6.35%

Potential Profit

-56.23%

Buy

Analyst Rating

Hold

Why It's Moving

VLO Stock Warning: Why Analysts See -5% Downside Risk

Citigroup hiked its price target to $212 from $190 but kept a neutral stance, fueling a brief 52-week high of $204.14 before the pullback.
Q4 earnings crushed expectations with EPS of $3.82 versus $3.27 forecast and revenue of $30.37B topping $28.20B estimates, underscoring refining strength.
Board approved a dividend increase to $1.20 quarterly ($4.80 annualized, 2.4% yield), signaling management confidence in cash flow amid sector volatility.

Sentiment:

🐻Bearish

IMO Stock Warning: Analysts Flag -55% Downside Risk Amid Profit-Taking Pullback

Profit-taking hit after strong 11.2% weekly rally from February 2-9, signaling overextension and inviting analyst scrutiny on sustainability.
TSE: IMO closed at 163.06, up 2.88% on February 13 with solid volume of 341,741 shares, yet pulling back amid sector headwinds.
Energy peers face macro oil volatility, amplifying downside risks as analysts highlight potential 55% drop tied to weakening demand signals.

Sentiment:

🐻Bearish

VLO Stock Warning: Why Analysts See -5% Downside Risk

Citigroup hiked its price target to $212 from $190 but kept a neutral stance, fueling a brief 52-week high of $204.14 before the pullback.
Q4 earnings crushed expectations with EPS of $3.82 versus $3.27 forecast and revenue of $30.37B topping $28.20B estimates, underscoring refining strength.
Board approved a dividend increase to $1.20 quarterly ($4.80 annualized, 2.4% yield), signaling management confidence in cash flow amid sector volatility.

Sentiment:

🐻Bearish

IMO Stock Warning: Analysts Flag -55% Downside Risk Amid Profit-Taking Pullback

Profit-taking hit after strong 11.2% weekly rally from February 2-9, signaling overextension and inviting analyst scrutiny on sustainability.
TSE: IMO closed at 163.06, up 2.88% on February 13 with solid volume of 341,741 shares, yet pulling back amid sector headwinds.
Energy peers face macro oil volatility, amplifying downside risks as analysts highlight potential 55% drop tied to weakening demand signals.

Sentiment:

🐻Bearish

Investment Analysis

Valero

VLO

Pros

Valero Energy operates a diversified portfolio across refining, renewable diesel, and ethanol segments, spanning the US, Canada, and UK, supporting resilience and growth.
The company returned $1.3 billion to shareholders in Q3 2025 through dividends and share buybacks, indicating strong cash flow generation and capital return discipline.
Valero benefits from positive refining margin optimism and infrastructure investment sentiment, supporting near-term momentum despite market volatility.

Considerations

Short-term price forecasts suggest a potential decline by late 2025, reflecting market uncertainty and volatility in oil prices and refining margins.
Valero's valuation metrics indicate a relatively high PE ratio (around 35) compared to forward PE near 14, raising questions about near-term earnings growth sustainability.
The company is exposed to commodity price fluctuations and supply chain challenges, which could impact margins and operational performance.

Imperial Oil

IMO

Pros

Imperial Oil is a fully integrated Canadian oil company with operations across exploration, production, refining, and marketing, providing operational synergy and revenue diversity.
The company benefits from its majority ownership by ExxonMobil, providing financial strength, technological expertise, and strategic support.
Imperial Oil's strong market position in Canada and integrated operations potentially offer stability amid fluctuating commodity prices and regulatory environments.

Considerations

Imperial Oil's reliance on Canadian operations exposes it to country-specific regulatory and environmental policies that may increase compliance costs or restrict growth.
The company faces execution risks from volatile commodity markets and operational challenges inherent in exploration and production activities.
Imperial Oil’s growth can be constrained by capital expenditure demands and evolving energy transition pressures impacting traditional oil and gas sectors.

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