PBF Logistics (NYSE: PBFX) and Enbridge Energy Partners (NYSE:EEP) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.
Risk and Volatility
PBF Logistics has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Enbridge Energy Partners has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
This table compares PBF Logistics and Enbridge Energy Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PBF Logistics||$254.81 million||3.37||$91.38 million||$2.17||9.45|
|Enbridge Energy Partners||$2.43 billion||1.75||$282.00 million||$0.63||20.70|
Enbridge Energy Partners has higher revenue and earnings than PBF Logistics. PBF Logistics is trading at a lower price-to-earnings ratio than Enbridge Energy Partners, indicating that it is currently the more affordable of the two stocks.
This table compares PBF Logistics and Enbridge Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enbridge Energy Partners||9.12%||5.68%||2.15%|
This is a breakdown of recent recommendations and price targets for PBF Logistics and Enbridge Energy Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enbridge Energy Partners||2||7||1||0||1.90|
PBF Logistics currently has a consensus price target of $24.00, suggesting a potential upside of 17.07%. Enbridge Energy Partners has a consensus price target of $17.50, suggesting a potential upside of 34.20%. Given Enbridge Energy Partners’ higher probable upside, analysts plainly believe Enbridge Energy Partners is more favorable than PBF Logistics.
Institutional & Insider Ownership
35.5% of PBF Logistics shares are owned by institutional investors. Comparatively, 45.7% of Enbridge Energy Partners shares are owned by institutional investors. 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.
PBF Logistics pays an annual dividend of $1.92 per share and has a dividend yield of 9.4%. Enbridge Energy Partners pays an annual dividend of $1.40 per share and has a dividend yield of 10.7%. PBF Logistics pays out 88.5% 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 Energy Partners pays out 222.2% 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 Energy Partners has increased its dividend for 3 consecutive years. Enbridge Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
PBF Logistics Company Profile
PBF Logistics LP owns or leases, operates, develops and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. The Company operates through two segments: Transportation and Terminaling, and Storage. The Transportation and Terminaling segment consists of various assets, including Delaware City Rail Unloading Terminal (DCR Rail Terminal), Toledo Truck Unloading Terminal (Toledo Truck Terminal), Delaware City West Heavy Unloading Rack (the DCR West Rack), East Coast Terminals and Torrance Valley Pipeline. The Storage Segment includes the Toledo Storage Facility, excluding the propane truck loading facility. The storage facility at its Toledo Storage Facility consisted of 30 tanks for storing crude oil, refined products and intermediates, as of December 31, 2016. PBF Logistics GP LLC (PBF GP) is its general partner. PBF GP is owned by PBF Energy Company LLC (PBF LLC).
Enbridge Energy Partners Company Profile
Enbridge Energy Partners, L.P is a geographically and operationally diversified organization that provides crude oil and liquid petroleum gathering and transportation and storage services. The Company operates through the Liquids business segment. Its Liquids segment includes the operations of its Lakehead, North Dakota and mid-continent systems. The Company’s Lakehead system along with the Enbridge system formed the Mainline system, together formed the liquid petroleum pipeline system, as of December 31, 2016. The Mainline system serves refining centers in the Great Lakes and Midwest regions of the United States and the provinces of Ontario and Quebec, Canada. The Lakehead system is the United States portion of the Mainline system.
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