PBF Energy (NYSE:PBF) and Teekay Tankers (NYSE:TNK) Head to Head Survey

Teekay Tankers (NYSE:TNK) and PBF Energy (NYSE:PBF) are both mid-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Valuation and Earnings

This table compares Teekay Tankers and PBF Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay Tankers	$951.80 million	3.25	$351.19 million	$16.97	5.28
PBF Energy	$29.33 billion	0.29	-$158.50 million	$11.30	6.43

Teekay Tankers has higher earnings, but lower revenue than PBF Energy. Teekay Tankers is trading at a lower price-to-earnings ratio than PBF Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Teekay Tankers and PBF Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay Tankers	51.35%	22.11%	20.23%
PBF Energy	3.94%	11.27%	4.67%

Insider and Institutional Ownership

52.7% of Teekay Tankers shares are held by institutional investors. Comparatively, 96.3% of PBF Energy shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by company insiders. Comparatively, 5.5% of PBF Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. PBF Energy pays an annual dividend of $1.10 per share and has a dividend yield of 1.5%. Teekay Tankers pays out 5.9% of its earnings in the form of a dividend. PBF Energy pays out 9.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Teekay Tankers has raised its dividend for 2 consecutive years and PBF Energy has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings for Teekay Tankers and PBF Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay Tankers	1	3	3	1	2.50
PBF Energy	5	8	2	1	1.94

Teekay Tankers presently has a consensus target price of $77.00, indicating a potential downside of 13.99%. PBF Energy has a consensus target price of $50.92, indicating a potential downside of 29.88%. Given Teekay Tankers’ stronger consensus rating and higher possible upside, research analysts plainly believe Teekay Tankers is more favorable than PBF Energy.

Risk & Volatility

Teekay Tankers has a beta of -0.22, meaning that its share price is 122% less volatile than the S&P 500. Comparatively, PBF Energy has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Summary

Teekay Tankers beats PBF Energy on 10 of the 16 factors compared between the two stocks.

About Teekay Tankers

Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.

About PBF Energy

PBF Energy Inc., through its subsidiaries, engages in refining and supplying petroleum products. The company operates in two segments, Refining and Logistics. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, petrochemical feedstocks, blending components, and other petroleum products from crude oil. The company sells its products in Northeast, Midwest, Gulf Coast, and West Coast of the United States, as well as in other regions of the United States, Canada, Mexico, and internationally. It is also involved in the provision of various rail, truck, and marine terminaling services, as well as pipeline transportation and storage services. The company was founded in 2008 and is based in Parsippany, New Jersey.