Delek Logistics Partners (NYSE: DKL) and Energy Transfer Partners (NYSE:ETP) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Volatility & Risk
Delek Logistics Partners has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Energy Transfer Partners has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
24.6% of Delek Logistics Partners shares are owned by institutional investors. Comparatively, 64.3% of Energy Transfer Partners shares are owned by institutional investors. 0.2% of Energy Transfer Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current recommendations for Delek Logistics Partners and Energy Transfer Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delek Logistics Partners||1||2||0||0||1.67|
|Energy Transfer Partners||0||5||13||0||2.72|
Delek Logistics Partners presently has a consensus price target of $32.50, indicating a potential upside of 12.07%. Energy Transfer Partners has a consensus price target of $25.08, indicating a potential upside of 40.96%. Given Energy Transfer Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Energy Transfer Partners is more favorable than Delek Logistics Partners.
Delek Logistics Partners pays an annual dividend of $2.90 per share and has a dividend yield of 10.0%. Energy Transfer Partners pays an annual dividend of $2.26 per share and has a dividend yield of 12.7%. Delek Logistics Partners pays out 138.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energy Transfer Partners pays out -443.1% of its earnings in the form of a dividend. Delek Logistics Partners has raised its dividend for 4 consecutive years. Energy Transfer Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Delek Logistics Partners and Energy Transfer Partners’ 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||$538.08 million||1.34||$69.40 million||$2.09||13.88|
|Energy Transfer Partners||$29.05 billion||0.71||$2.08 billion||($0.51)||-34.88|
Energy Transfer Partners has higher revenue and earnings than Delek Logistics Partners. Energy Transfer Partners is trading at a lower price-to-earnings ratio than Delek Logistics Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Delek Logistics Partners and Energy Transfer Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delek Logistics Partners||12.90%||-292.19%||16.38%|
|Energy Transfer Partners||6.54%||6.43%||2.66%|
Energy Transfer Partners beats Delek Logistics Partners on 10 of the 17 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.
Energy Transfer Partners Company Profile
Energy Transfer Partners, L.P., formerly Sunoco Logistics Partners L.P., owns and operates a logistics business. The Company is engaged in the transport, terminaling and storage of crude oil, refined products and natural gas liquids (NGLs). The Company’s segments include Crude Oil, Natural Gas Liquids and Refined Products. In addition to logistics services, it also owns acquisition and marketing assets. The Crude Oil segment provides transportation, terminaling and acquisition and marketing services to crude oil markets throughout the southwest, midwest and northeastern United States. The Natural Gas Liquids segment transports, stores, and executes acquisition and marketing activities utilizing a network of pipelines, storage and blending facilities, and strategic off-take locations that provide access to multiple NGL markets. The Refined Products segment provides transportation and terminaling services, using refined products pipelines and refined products marketing terminals.
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