PBF Energy (NYSE: PBF) and Ngl Energy Partners Lp (NYSE:NGL) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 5.9%. Ngl Energy Partners Lp pays an annual dividend of $1.56 per share and has a dividend yield of 16.8%. PBF Energy pays out -363.6% of its earnings in the form of a dividend. Ngl Energy Partners Lp pays out -124.8% 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.
This is a breakdown of current ratings for PBF Energy and Ngl Energy Partners Lp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ngl Energy Partners Lp||0||2||3||0||2.60|
PBF Energy currently has a consensus price target of $24.00, suggesting a potential upside of 17.88%. Ngl Energy Partners Lp has a consensus price target of $17.80, suggesting a potential upside of 91.40%. Given Ngl Energy Partners Lp’s stronger consensus rating and higher probable upside, analysts plainly believe Ngl Energy Partners Lp is more favorable than PBF Energy.
Earnings & Valuation
This table compares PBF Energy and Ngl Energy Partners Lp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PBF Energy||$19.03 billion||0.12||$189.02 million||($0.33)||-61.70|
|Ngl Energy Partners Lp||$14.08 billion||0.08||$282.16 million||($1.25)||-7.44|
Ngl Energy Partners Lp has higher revenue, but lower earnings than PBF Energy. PBF Energy is trading at a lower price-to-earnings ratio than Ngl Energy Partners Lp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
76.4% of Ngl Energy Partners Lp shares are owned by institutional investors. 2.6% of PBF Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares PBF Energy and Ngl Energy Partners Lp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ngl Energy Partners Lp||-0.73%||-5.00%||-1.62%|
Volatility and Risk
PBF Energy has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Ngl Energy Partners Lp has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.
PBF Energy beats Ngl Energy Partners Lp on 10 of the 15 factors compared between the two stocks.
About PBF Energy
PBF Energy Inc. (PBF Energy) is a holding company. The Company is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company operates through two segments: Refining and Logistics. It sells its products throughout the Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other regions of the United States and Canada, and ships products to other international destinations. As of December 31, 2016, it owned and operated five domestic oil refineries and related assets. As of December 31, 2016, its refineries had a combined processing capacity, known as throughput, of approximately 900,000 barrels per day (bpd) and a weighted-average Nelson Complexity Index of approximately 12.2. As of December 31, 2016, the Company owned and operated five refineries providing geographic and market diversity.
About Ngl Energy Partners Lp
NGL Energy Partners LP owns and operates a vertically integrated energy business. The Company’s segments are crude oil logistics, water solutions, liquids, retail propane, refined products and renewables, and corporate and other. Its crude oil logistics segment includes owned and leased crude oil storage terminals, and owned and leased pipeline injection stations. Its water solutions segment provides services for the treatment and disposal of wastewater generated from crude oil and natural gas production, and for the disposal of solids, such as tank bottoms and drilling fluids. Its liquids segment supplies natural gas liquids to retailers, wholesalers, refiners and petrochemical plants throughout the United States and in Canada. Its retail propane segment consists of the retail marketing, and sale and distribution of propane and distillates, among others. The Company’s refined products and renewables segment is engaged in gasoline, diesel, ethanol and biodiesel marketing operations.
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