PBF Energy (NYSE: PBF) and Arc Logistic Partners (NYSE:ARCX) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
This is a breakdown of recent ratings and target prices for PBF Energy and Arc Logistic Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arc Logistic Partners||0||3||1||0||2.25|
PBF Energy presently has a consensus price target of $23.67, suggesting a potential downside of 4.69%. Arc Logistic Partners has a consensus price target of $18.33, suggesting a potential upside of 10.18%. Given Arc Logistic Partners’ higher possible upside, analysts clearly believe Arc Logistic Partners is more favorable than PBF Energy.
Volatility and Risk
PBF Energy has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Arc Logistic Partners has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.
Valuation & Earnings
This table compares PBF Energy and Arc Logistic Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PBF Energy||$19.03 billion||0.14||$189.02 million||($0.33)||-75.24|
|Arc Logistic Partners||$105.58 million||3.08||$53.34 million||$0.71||23.44|
PBF Energy has higher revenue and earnings than Arc Logistic Partners. PBF Energy is trading at a lower price-to-earnings ratio than Arc Logistic Partners, indicating that it is currently the more affordable of the two stocks.
PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 4.8%. Arc Logistic Partners pays an annual dividend of $1.76 per share and has a dividend yield of 10.6%. PBF Energy pays out -363.6% of its earnings in the form of a dividend. Arc Logistic Partners pays out 247.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Arc Logistic Partners has raised its dividend for 2 consecutive years. Arc Logistic Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares PBF Energy and Arc Logistic Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arc Logistic Partners||13.28%||4.10%||2.31%|
Institutional & Insider Ownership
40.6% of Arc Logistic Partners shares are owned by institutional investors. 2.6% of PBF Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Arc Logistic Partners beats PBF Energy on 9 of the 16 factors compared between the two stocks.
PBF Energy Company Profile
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.
Arc Logistic Partners Company Profile
Arc Logistics Partners LP owns, operates, develops and acquires a portfolio of energy logistics assets. The Company is engaged in the terminaling, storage, throughput and transloading of crude oil and petroleum products. The Company is focused on growing its business through the optimization, organic development and acquisition of terminaling, storage, rail, pipeline and other energy logistics assets. As of March 6, 2017, the Company’s energy logistics assets were located in the East Coast, Gulf Coast, Midwest, Rocky Mountains and West Coast regions of the United States and supplied a group of third-party customers, including oil companies, independent refiners, crude oil and petroleum product marketers, distributors and various industrial manufacturers. As of December 31, 2016, its assets consisted of 21 terminals in 12 states; four rail transloading facilities, and the liquefied natural gas (LNG) Interest in connection with the LNG Facility.
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