Analyzing PBF Logistics (PBFX) and Sunoco Logistics Partners (ETP)

PBF Logistics (NYSE: PBFX) and Sunoco Logistics Partners (NYSE:ETP) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares PBF Logistics and Sunoco Logistics Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PBF Logistics $187.34 million 4.69 $75.94 million $2.24 9.35
Sunoco Logistics Partners $9.15 billion 2.26 $705.00 million $0.67 26.75

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

Analyst Ratings

This is a summary of recent ratings and price targets for PBF Logistics and Sunoco Logistics Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Logistics 0 1 0 0 2.00
Sunoco Logistics Partners 0 4 13 0 2.76

PBF Logistics currently has a consensus target price of $24.00, indicating a potential upside of 14.56%. Sunoco Logistics Partners has a consensus target price of $25.77, indicating a potential upside of 43.80%. Given Sunoco Logistics Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Sunoco Logistics Partners is more favorable than PBF Logistics.

Dividends

PBF Logistics pays an annual dividend of $1.92 per share and has a dividend yield of 9.2%. Sunoco Logistics Partners pays an annual dividend of $2.26 per share and has a dividend yield of 12.6%. PBF Logistics pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sunoco Logistics Partners pays out 337.3% 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 Logistics has raised its dividend for 2 consecutive years and Sunoco Logistics Partners has raised its dividend for 4 consecutive years. Sunoco Logistics Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
PBF Logistics 38.76% 64.05% 12.90%
Sunoco Logistics Partners 4.97% 5.88% 2.44%

Institutional and Insider Ownership

37.4% of PBF Logistics shares are held by institutional investors. Comparatively, 62.2% of Sunoco Logistics Partners shares are held by institutional investors. 3.7% of Sunoco Logistics Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

PBF Logistics has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Sunoco Logistics Partners has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Summary

Sunoco Logistics Partners beats PBF Logistics on 10 of the 17 factors compared between the two stocks.

About PBF Logistics

PBF Logistics LP owns or leases, operates, develops and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. The Company operates through two segments: Transportation and Terminaling, and Storage. The Transportation and Terminaling segment consists of various assets, including Delaware City Rail Unloading Terminal (DCR Rail Terminal), Toledo Truck Unloading Terminal (Toledo Truck Terminal), Delaware City West Heavy Unloading Rack (the DCR West Rack), East Coast Terminals and Torrance Valley Pipeline. The Storage Segment includes the Toledo Storage Facility, excluding the propane truck loading facility. The storage facility at its Toledo Storage Facility consisted of 30 tanks for storing crude oil, refined products and intermediates, as of December 31, 2016. PBF Logistics GP LLC (PBF GP) is its general partner. PBF GP is owned by PBF Energy Company LLC (PBF LLC).

About Sunoco Logistics Partners

Energy Transfer Partners, L.P., formerly Sunoco Logistics Partners L.P., owns and operates a logistics business. The Company is engaged in the transport, terminaling and storage of crude oil, refined products and natural gas liquids (NGLs). The Company’s segments include Crude Oil, Natural Gas Liquids and Refined Products. In addition to logistics services, it also owns acquisition and marketing assets. The Crude Oil segment provides transportation, terminaling and acquisition and marketing services to crude oil markets throughout the southwest, midwest and northeastern United States. The Natural Gas Liquids segment transports, stores, and executes acquisition and marketing activities utilizing a network of pipelines, storage and blending facilities, and strategic off-take locations that provide access to multiple NGL markets. The Refined Products segment provides transportation and terminaling services, using refined products pipelines and refined products marketing terminals.

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