Delek Logistics Partners (NYSE: DKL) and Enbridge (NYSE:ENB) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.
This table compares Delek Logistics Partners and Enbridge’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delek Logistics Partners||12.86%||-332.86%||15.79%|
This is a summary of recent recommendations and price targets for Delek Logistics Partners and Enbridge, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delek Logistics Partners||1||1||0||0||1.50|
Delek Logistics Partners presently has a consensus target price of $32.50, suggesting a potential upside of 0.00%. Enbridge has a consensus target price of $52.00, suggesting a potential upside of 30.62%. Given Enbridge’s stronger consensus rating and higher possible upside, analysts plainly believe Enbridge is more favorable than Delek Logistics Partners.
Delek Logistics Partners pays an annual dividend of $2.86 per share and has a dividend yield of 8.8%. Enbridge pays an annual dividend of $1.92 per share and has a dividend yield of 4.8%. Delek Logistics Partners pays out 143.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enbridge pays out 120.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Delek Logistics Partners has increased its dividend for 6 consecutive years and Enbridge has increased its dividend for 4 consecutive years. Delek Logistics Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
25.1% of Delek Logistics Partners shares are owned by institutional investors. Comparatively, 62.2% of Enbridge shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Delek Logistics Partners and Enbridge’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Delek Logistics Partners||$448.06 million||1.80||$62.80 million||$1.99||16.33|
|Enbridge||$25.89 billion||2.54||$1.56 billion||$1.59||25.04|
Enbridge has higher revenue and earnings than Delek Logistics Partners. Delek Logistics Partners is trading at a lower price-to-earnings ratio than Enbridge, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Delek Logistics Partners has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Enbridge has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
Enbridge beats Delek Logistics Partners on 10 of the 16 factors compared between the two stocks.
Delek Logistics Partners Company Profile
Delek Logistics Partners, LP owns and operates logistics and marketing assets for crude oil, and intermediate and refined products. The Company’s business primarily consists of certain crude oil, intermediate and refined products pipelines and transportation, storage, wholesale marketing, terminaling and offloading assets, which were previously owned, operated or held by Delek US Holdings, Inc. (Delek), and assets acquired from unrelated third parties. The Company operates through two segments: Pipelines and Transportation segment, and Wholesale Marketing and Terminalling segment. The Company engaged in the gathering, transporting and storing crude oil; storing intermediate products and feed stocks, and marketing, distributing, transporting, offloading and storing refined products. The Company also provides crude oil, intermediate and refined products transportation services for terminaling, and marketing services to third parties primarily in Texas, Tennessee and Arkansas.
Enbridge Company Profile
Enbridge Inc. is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System. Gas Distribution consists of its natural gas utility operations, the core of which is Enbridge Gas Distribution Inc. Green Power and Transmission consists of its investments in renewable energy assets and transmission facilities. Renewable energy assets consist of wind, solar, geothermal and waste heat recovery facilities in Canada. Energy Services undertake physical commodity marketing activity and logistical services, and oversee refinery supply services.
Receive News & Ratings for Delek Logistics Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Delek Logistics Partners and related companies with MarketBeat.com's FREE daily email newsletter.