Analyzing Delek Logistics Partners, L.P. (DKL) & Its Competitors

Delek Logistics Partners, L.P. (NYSE: DKL) is one of 53 public companies in the “Oil & Gas Transportation Services” industry, but how does it weigh in compared to its rivals? We will compare Delek Logistics Partners, L.P. to similar businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares Delek Logistics Partners, L.P. and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Delek Logistics Partners, L.P. $488.39 million $100.26 million 15.79
Delek Logistics Partners, L.P. Competitors $5.66 billion $1.31 billion 34.94

Delek Logistics Partners, L.P.’s rivals have higher revenue and earnings than Delek Logistics Partners, L.P.. Delek Logistics Partners, L.P. is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Delek Logistics Partners, L.P. and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delek Logistics Partners, L.P. 0 2 1 0 2.33
Delek Logistics Partners, L.P. Competitors 288 1775 2372 85 2.50

Delek Logistics Partners, L.P. currently has a consensus target price of $33.50, indicating a potential upside of 11.67%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 24.30%. Given Delek Logistics Partners, L.P.’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Delek Logistics Partners, L.P. has less favorable growth aspects than its rivals.

Volatility and Risk

Delek Logistics Partners, L.P. has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Delek Logistics Partners, L.P.’s rivals have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.

Dividends

Delek Logistics Partners, L.P. pays an annual dividend of $2.82 per share and has a dividend yield of 9.4%. Delek Logistics Partners, L.P. pays out 148.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.8% and pay out 171.5% of their earnings in the form of a dividend. Delek Logistics Partners, L.P. has increased its dividend for 3 consecutive years. Delek Logistics Partners, L.P. is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares Delek Logistics Partners, L.P. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Delek Logistics Partners, L.P. 12.70% -368.38% 15.15%
Delek Logistics Partners, L.P. Competitors 16.58% 13.07% 5.30%

Insider and Institutional Ownership

28.8% of Delek Logistics Partners, L.P. shares are held by institutional investors. Comparatively, 57.4% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 9.2% of shares of all “Oil & Gas Transportation Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Delek Logistics Partners, L.P. rivals beat Delek Logistics Partners, L.P. on 12 of the 15 factors compared.

About Delek Logistics Partners, L.P.

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.

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