Critical Review: PBF Energy (PBF) & Aegean Marine Petroleum Network (ANW)

PBF Energy (NYSE: PBF) and Aegean Marine Petroleum Network (NYSE:ANW) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares PBF Energy and Aegean Marine Petroleum Network’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PBF Energy 1.14% 2.35% 0.78%
Aegean Marine Petroleum Network 0.28% 4.26% 1.55%

Analyst Ratings

This is a summary of current ratings and recommmendations for PBF Energy and Aegean Marine Petroleum Network, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Energy 4 5 5 0 2.07
Aegean Marine Petroleum Network 0 0 3 0 3.00

PBF Energy currently has a consensus price target of $30.11, indicating a potential downside of 12.80%. Aegean Marine Petroleum Network has a consensus price target of $7.00, indicating a potential upside of 48.94%. Given Aegean Marine Petroleum Network’s stronger consensus rating and higher possible upside, analysts plainly believe Aegean Marine Petroleum Network is more favorable than PBF Energy.

Dividends

PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 3.5%. Aegean Marine Petroleum Network pays an annual dividend of $0.08 per share and has a dividend yield of 1.7%. PBF Energy pays out 60.0% of its earnings in the form of a dividend. Aegean Marine Petroleum Network pays out 20.5% 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.

Risk and Volatility

PBF Energy has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Aegean Marine Petroleum Network has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500.

Valuation & Earnings

This table compares PBF Energy and Aegean Marine Petroleum Network’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 $15.92 billion 0.24 $170.81 million $2.00 17.27
Aegean Marine Petroleum Network $4.08 billion 0.05 $51.87 million $0.39 12.05

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

Insider & Institutional Ownership

62.3% of Aegean Marine Petroleum Network 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 company is poised for long-term growth.

Summary

PBF Energy beats Aegean Marine Petroleum Network 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.

Aegean Marine Petroleum Network Company Profile

Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company. The Company markets and physically supplies refined marine fuel and lubricants to vessels in port, at sea and on rivers. As a physical supplier, the Company procures marine fuel from refineries, oil producers and other sources, and resells and delivers these fuels from its bunkering vessels to a range of end users. The Company owns and operates a fleet of approximately 50 bunkering vessels. The Company operates over 10 land-based storage facilities. The Company operates a vessel as a floating storage facility with a cargo carrying capacity of approximately 19,900 deadweight tonnage (dwt). The Company provides fueling services to various types of ocean-going and various types of coastal vessels, such as oil tankers, container ships, drybulk carriers, cruise ships, reefers, liquefied natural gas (LNG)/liquefied petroleum gas (LPG) carriers, car carriers and ferries.

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