PBF Logistics (NYSE: PBFX) and Enable Midstream Partners (NYSE:ENBL) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Volatility & Risk
PBF Logistics has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Enable Midstream Partners has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.
This table compares PBF Logistics and Enable Midstream Partners’ top-line 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||3.27||$100.28 million||$2.51||7.93|
|Enable Midstream Partners||$2.80 billion||2.18||$436.00 million||$0.93||15.20|
Enable Midstream Partners has higher revenue and earnings than PBF Logistics. PBF Logistics is trading at a lower price-to-earnings ratio than Enable Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
35.4% of PBF Logistics shares are owned by institutional investors. Comparatively, 18.3% of Enable Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent ratings for PBF Logistics and Enable Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enable Midstream Partners||0||5||3||0||2.38|
PBF Logistics presently has a consensus target price of $24.00, indicating a potential upside of 20.60%. Enable Midstream Partners has a consensus target price of $18.31, indicating a potential upside of 29.51%. Given Enable Midstream Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Enable Midstream Partners is more favorable than PBF Logistics.
PBF Logistics pays an annual dividend of $1.94 per share and has a dividend yield of 9.7%. Enable Midstream Partners pays an annual dividend of $1.27 per share and has a dividend yield of 9.0%. PBF Logistics pays out 77.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners pays out 136.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners has increased its dividend for 3 consecutive years. PBF Logistics is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares PBF Logistics and Enable Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enable Midstream Partners||15.23%||5.81%||3.78%|
About PBF Logistics
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).
About Enable Midstream Partners
Enable Midstream Partners LP owns, operates and develops midstream energy infrastructure assets strategically located to serve its customers. The Company operates in two business segments: Gathering and Processing, and Transportation and Storage. Its gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to its producer customers. Its transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, Local distribution company (LDC) and industrial end user customers. As of December 31, 2016, the Company owned and operated natural gas and crude oil gathering and natural gas processing assets in five states. As of December 31, 2016, the Company owned and operated interstate and intrastate transportation and storage systems across nine states.
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