Delek Logistics Partners (NYSE:DKL) and PBF Energy (NYSE:PBF) Financial Analysis

PBF Energy (NYSE:PBF – Get Free Report) and Delek Logistics Partners (NYSE:DKL – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PBF Energy and Delek Logistics Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Energy 3 8 3 1 2.13
Delek Logistics Partners 0 5 2 0 2.29

PBF Energy currently has a consensus target price of $65.55, indicating a potential downside of 22.62%. Delek Logistics Partners has a consensus target price of $55.60, indicating a potential downside of 3.07%. Given Delek Logistics Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Delek Logistics Partners is more favorable than PBF Energy.

Volatility & Risk

PBF Energy has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Delek Logistics Partners has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Dividends

PBF Energy pays an annual dividend of $1.10 per share and has a dividend yield of 1.3%. Delek Logistics Partners pays an annual dividend of $4.54 per share and has a dividend yield of 7.9%. PBF Energy pays out 9.7% of its earnings in the form of a dividend. Delek Logistics Partners pays out 158.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PBF Energy has increased its dividend for 2 consecutive years and Delek Logistics Partners has increased its dividend for 1 consecutive years.

Profitability

This table compares PBF Energy and Delek Logistics Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PBF Energy 3.94% 11.27% 4.67%
Delek Logistics Partners 12.85% -935.80% 5.45%

Insider and Institutional Ownership

96.3% of PBF Energy shares are owned by institutional investors. Comparatively, 11.7% of Delek Logistics Partners shares are owned by institutional investors. 5.5% of PBF Energy shares are owned by company insiders. Comparatively, 1.0% of Delek Logistics Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares PBF Energy and Delek Logistics Partners”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PBF Energy $29.33 billion 0.34 -$158.50 million $11.30 7.50
Delek Logistics Partners $1.01 billion 3.24 $176.46 million $2.87 19.99

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

About PBF Energy

(Get Free Report)

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.

About Delek Logistics Partners

(Get Free Report)

Delek Logistics Partners, LP provides gathering, pipeline, transportation, and other services for crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling water disposal and recycling customers in the United States. The Gathering and Processing segment consists of pipelines, tanks, and offloading facilities that provide crude oil and natural gas gathering and processing, water disposal and recycling, and storage services, as well as crude oil transportation services to third parties. The Wholesale Marketing and Terminalling segment includes refined products terminals and pipelines in Texas, Tennessee, and Arkansas. This segment provides marketing services for the refined products and terminalling services at refined products terminals to independent third parties. The Storage and Transportation segment comprises tanks, offloading facilities, trucks, and ancillary assets, which provide crude oil, intermediate, and refined products transportation and storage services. Delek Logistics GP, LLC serves as the general partner of the company. Delek Logistics Partners, LP was incorporated in 2012 and is headquartered in Brentwood, Tennessee. Delek Logistics Partners, LP operates as a subsidiary of Delek US Holdings, Inc.

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