Contrasting Delek Logistics Partners, L.P. (DKL) and Its Peers

Delek Logistics Partners, L.P. (NYSE: DKL) is one of 54 public companies in the “Oil & Gas Transportation Services” industry, but how does it contrast to its peers? We will compare Delek Logistics Partners, L.P. to related companies based on the strength of its valuation, profitability, earnings, institutional ownership, risk, analyst recommendations and dividends.

Dividends

Delek Logistics Partners, L.P. pays an annual dividend of $2.82 per share and has a dividend yield of 9.2%. 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 6.6% and pay out 166.5% of their earnings in the form of a dividend. Delek Logistics Partners, L.P. has raised its dividend for 3 consecutive years. Delek Logistics Partners, L.P. is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and price targets for Delek Logistics Partners, L.P. and its peers, as provided 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 293 1782 2383 86 2.50

Delek Logistics Partners, L.P. currently has a consensus price target of $33.50, suggesting a potential upside of 9.12%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 24.40%. Given Delek Logistics Partners, L.P.’s peers stronger consensus rating and higher possible upside, analysts plainly believe Delek Logistics Partners, L.P. has less favorable growth aspects than its peers.

Volatility & Risk

Delek Logistics Partners, L.P. has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Delek Logistics Partners, L.P.’s peers have a beta of 1.38, suggesting that their average share price is 38% more volatile than the S&P 500.

Institutional & Insider Ownership

28.8% of Delek Logistics Partners, L.P. shares are held by institutional investors. Comparatively, 57.3% 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Delek Logistics Partners, L.P. and its peers’ 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 18.03% 14.05% 6.46%

Earnings & Valuation

This table compares Delek Logistics Partners, L.P. and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Delek Logistics Partners, L.P. $488.39 million $100.26 million 16.16
Delek Logistics Partners, L.P. Competitors $5.65 billion $1.31 billion 46.42

Delek Logistics Partners, L.P.’s peers 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 peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Delek Logistics Partners, L.P. peers 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.

What are top analysts saying about Delek Logistics Partners L.P.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Delek Logistics Partners L.P. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit