Is Aris Water Solutions a Better Buy Than Valero Energy?
Even as Valero Energy surged 7.0% during the past Day, its peer Aris Water Solutions may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Aris Water Solutions (ARIS) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Valero Energy (VLO) stock, suggesting you may be better off investing in ARIS
- ARIS’s quarterly revenue growth was 22.7%, vs. VLO’s -2.2%.
- In addition, its Last 12 Months revenue growth came in at 16.4%, ahead of VLO’s -8.5%.
- ARIS leads on profitability over both periods – LTM margin of 23.9% and 3-year average of 22.6%.
Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Should you buy one stock you like or build a portfolio designed to win across cycles? Our numbers show that High Quality Portfolio has turned stock-picking uncertainty into market-beating consistency. This portfolio is incorporated in asset allocation strategy of Empirical Asset Management – a Boston area wealth manager and Trefis partner – whose asset allocation framework yielded positive returns during the 2008-09 period when the S&P lost more than 40%.
VLO manufactures and markets transportation fuels and petrochemicals through refining, renewable diesel, and ethanol segments, operating 15 refineries with 3.2 million barrels daily capacity. ARIS provides water handling and recycling solutions, founded in 2015 and headquartered in Houston, Texas.
Valuation & Performance Overview
- Time To Buy BitMine Immersion Technologies Stock?
- Marvell vs. Broadcom: Same AI Stack, 20x Valuation Disparity
- What Morgan Stanley’s Downgrade Means for Tesla
- Stronger Bet Than Union Pacific Stock: CP Delivers More
- Stronger Bet Than LyondellBasell Industries Stock: DD Delivers More
- RCI Tops AT&T Stock on Price & Potential
| VLO | ARIS | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 17.3 | 6.8 | ARIS |
| Revenue Growth | |||
| Last Quarter | -2.2% | 22.7% | ARIS |
| Last 12 Months | -8.5% | 16.4% | ARIS |
| Last 3 Year Average | -10.3% | 20.5% | ARIS |
| Operating Margins | |||
| Last 12 Months | 2.5% | 23.9% | ARIS |
| Last 3 Year Average | 5.3% | 22.6% | ARIS |
| Momentum | |||
| Last 3 Year Return | 48.7% | 83.4% | ARIS |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: VLO Revenue Comparison | ARIS Revenue Comparison
See more margin details: VLO Operating Income Comparison | ARIS Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell VLO Stock to see if Valero Energy still has cards to play.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| VLO Return | -36% | 40% | 75% | 6% | -3% | 35% | 114% | <=== | |
| ARIS Return | – | – | 14% | -39% | 193% | 1% | 104% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 106% | ||
| Monthly Win Rates [3] | |||||||||
| VLO Win Rate | 33% | 58% | 75% | 58% | 42% | 78% | 57% | ||
| ARIS Win Rate | – | 50% | 42% | 42% | 67% | 67% | 44% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 67% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| VLO Max Drawdown | -65% | -1% | 0% | -17% | -6% | -14% | -17% | ||
| ARIS Max Drawdown | – | – | -14% | -52% | -6% | -17% | -15% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 10/23/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read VLO Dip Buyer Analyses to see how the stock has fallen and recovered in the past.