Delek Logistics Partners, L.P. (NYSE: DKL) and Enable Midstream Partners, (NYSE:ENBL) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitabiliy, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Valuation & Earnings

This table compares Delek Logistics Partners, L.P. and Enable Midstream Partners,’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Delek Logistics Partners, L.P. $473.48 million 1.68 $98.47 million $1.97 16.57
Enable Midstream Partners, $2.43 billion 2.56 $775.00 million $0.74 19.42

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

Risk and Volatility

Delek Logistics Partners, L.P. has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Enable Midstream Partners, has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Dividends

Delek Logistics Partners, L.P. pays an annual dividend of $2.76 per share and has a dividend yield of 8.5%. Enable Midstream Partners, pays an annual dividend of $1.27 per share and has a dividend yield of 8.8%. Delek Logistics Partners, L.P. pays out 140.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners, pays out 171.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners, has increased its dividend for 3 consecutive years. Enable Midstream Partners, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

27.3% of Delek Logistics Partners, L.P. shares are owned by institutional investors. Comparatively, 18.2% of Enable Midstream Partners, shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Delek Logistics Partners, L.P. and Enable Midstream Partners,, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delek Logistics Partners, L.P. 0 3 2 0 2.40
Enable Midstream Partners, 1 5 3 0 2.22

Delek Logistics Partners, L.P. currently has a consensus target price of $31.50, suggesting a potential downside of 3.52%. Enable Midstream Partners, has a consensus target price of $16.75, suggesting a potential upside of 16.56%. Given Enable Midstream Partners,’s higher probable upside, analysts plainly believe Enable Midstream Partners, is more favorable than Delek Logistics Partners, L.P..

Profitability

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

Net Margins Return on Equity Return on Assets
Delek Logistics Partners, L.P. 13.08% -446.17% 15.45%
Enable Midstream Partners, 13.71% 4.50% 2.97%

Summary

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

Delek Logistics Partners, L.P. Company Profile

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.

Enable Midstream Partners, Company Profile

Enable Midstream Partners LP owns, operates and develops midstream energy infrastructure assets strategically located to serve its customers. The Company operates in two business segments: Gathering and Processing, and Transportation and Storage. Its gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to its producer customers. Its transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, Local distribution company (LDC) and industrial end user customers. As of December 31, 2016, the Company owned and operated natural gas and crude oil gathering and natural gas processing assets in five states. As of December 31, 2016, the Company owned and operated interstate and intrastate transportation and storage systems across nine states.

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