Financial Review: PBF Energy (NYSE:PBF) and TotalEnergies (NYSE:TTE)

TotalEnergies (NYSE:TTE) and PBF Energy (NYSE:PBF) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Profitability

This table compares TotalEnergies and PBF Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TotalEnergies	6.98%	13.54%	5.56%
PBF Energy	-1.78%	-15.88%	-6.60%

Insider and Institutional Ownership

16.5% of TotalEnergies shares are held by institutional investors. Comparatively, 96.3% of PBF Energy shares are held by institutional investors. 6.7% of PBF Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for TotalEnergies and PBF Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TotalEnergies	0	10	4	1	2.40
PBF Energy	9	6	1	0	1.50

TotalEnergies currently has a consensus price target of $66.96, indicating a potential upside of 1.98%. PBF Energy has a consensus price target of $29.38, indicating a potential downside of 1.90%. Given TotalEnergies’ stronger consensus rating and higher probable upside, research analysts clearly believe TotalEnergies is more favorable than PBF Energy.

Earnings and Valuation

This table compares TotalEnergies and PBF Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TotalEnergies	$214.55 billion	0.73	$15.76 billion	$6.19	10.61
PBF Energy	$33.12 billion	0.10	-$533.80 million	($4.65)	-6.44

TotalEnergies has higher revenue and earnings than PBF Energy. PBF Energy is trading at a lower price-to-earnings ratio than TotalEnergies, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

TotalEnergies has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, PBF Energy has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Dividends

TotalEnergies pays an annual dividend of $2.94 per share and has a dividend yield of 4.5%. PBF Energy pays an annual dividend of $1.10 per share and has a dividend yield of 3.7%. TotalEnergies pays out 47.5% of its earnings in the form of a dividend. PBF Energy pays out -23.7% 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. PBF Energy has increased its dividend for 2 consecutive years.

Summary

TotalEnergies beats PBF Energy on 13 of the 18 factors compared between the two stocks.

About TotalEnergies

TotalEnergies SE, a multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally. It operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. The Exploration & Production segment is involved in the exploration and production of oil and natural gas. The Integrated LNG segment comprises the integrated gas chain, including upstream and midstream liquified natural gas (LNG) activities, as well as biogas, hydrogen, and gas trading activities. The Integrated Power segment includes generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity. The Refining & Chemicals segment consists of refining, petrochemicals, and specialty chemicals. This segment also includes oil supply, trading, and marine shipping activities. The Marketing & Services segment supplies and markets petroleum products. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was founded in 1924 and is headquartered in Courbevoie, France.

About PBF Energy

PBF Energy Inc., through its subsidiaries, engages in refining and supplying petroleum products. The company operates in two segments, Refining and Logistics. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, petrochemical feedstocks, blending components, and other petroleum products from crude oil. The company sells its products in Northeast, Midwest, Gulf Coast, and West Coast of the United States, as well as in other regions of the United States, Canada, Mexico, and internationally. It is also involved in the provision of various rail, truck, and marine terminaling services, as well as pipeline transportation and storage services. The company was founded in 2008 and is based in Parsippany, New Jersey.