Contrasting Teekay Offshore Partners L.P. (TOO) and Delek Logistics Partners, L.P. (DKL)

Teekay Offshore Partners L.P. (NYSE: TOO) and Delek Logistics Partners, L.P. (NYSE:DKL) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Earnings and Valuation

This table compares Teekay Offshore Partners L.P. and Delek Logistics Partners, L.P.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Teekay Offshore Partners L.P. $1.10 billion 0.35 $495.18 million $0.49 5.10
Delek Logistics Partners, L.P. $488.39 million 1.53 $100.26 million $1.90 16.16

Teekay Offshore Partners L.P. has higher revenue and earnings than Delek Logistics Partners, L.P.. Teekay Offshore Partners L.P. is trading at a lower price-to-earnings ratio than Delek Logistics Partners, L.P., indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

48.4% of Teekay Offshore Partners L.P. shares are held by institutional investors. Comparatively, 28.8% of Delek Logistics Partners, L.P. shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Teekay Offshore Partners L.P. and Delek Logistics Partners, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay Offshore Partners L.P. 11.51% 5.24% 0.78%
Delek Logistics Partners, L.P. 12.70% -368.38% 15.15%

Dividends

Teekay Offshore Partners L.P. pays an annual dividend of $0.04 per share and has a dividend yield of 1.6%. Delek Logistics Partners, L.P. pays an annual dividend of $2.82 per share and has a dividend yield of 9.2%. Teekay Offshore Partners L.P. pays out 8.2% of its earnings in the form of a dividend. 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. Teekay Offshore Partners L.P. has raised its dividend for 3 consecutive years.

Risk and Volatility

Teekay Offshore Partners L.P. has a beta of 2.76, indicating that its share price is 176% more volatile than the S&P 500. Comparatively, Delek Logistics Partners, L.P. has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Teekay Offshore Partners L.P. and Delek Logistics Partners, L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay Offshore Partners L.P. 1 1 3 0 2.40
Delek Logistics Partners, L.P. 0 2 1 0 2.33

Teekay Offshore Partners L.P. currently has a consensus price target of $4.67, suggesting a potential upside of 86.67%. Delek Logistics Partners, L.P. has a consensus price target of $33.50, suggesting a potential upside of 9.12%. Given Teekay Offshore Partners L.P.’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Teekay Offshore Partners L.P. is more favorable than Delek Logistics Partners, L.P..

Summary

Teekay Offshore Partners L.P. beats Delek Logistics Partners, L.P. on 11 of the 16 factors compared between the two stocks.

About Teekay Offshore Partners L.P.

Teekay Offshore Partners L.P. is a provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the offshore oil industry in North Sea, Brazil and the East Coast of Canada. The Company operates shuttle tankers; towage vessels; floating, production, storage and off-loading (FPSO) units; floating storage and off-take (FSO) units; units for maintenance and safety (UMS); long-distance towing and offshore installation vessels, and conventional crude oil tankers. Its segments include shuttle tanker segment, FPSO segment, FSO segment, conventional tanker segment, towage segment and UMS segment. Its fleet consists of over 30 shuttle tankers, such as over three chartered-in vessels and a HiLoad Dynamic Positioning unit, over six FPSO units, approximately seven FSO units, over six long-distance towing and offshore installation vessels, a UMS and over two conventional oil tankers.

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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