Phillips 66 Partners (NYSE:PSXP) versus Teekay Tankers (TNK) Head-To-Head Analysis
Phillips 66 Partners (NYSE: PSXP) and Teekay Tankers (NYSE:TNK) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.
Volatility and Risk
Phillips 66 Partners has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500.
Phillips 66 Partners pays an annual dividend of $2.46 per share and has a dividend yield of 5.3%. Teekay Tankers pays an annual dividend of $0.12 per share and has a dividend yield of 7.8%. Phillips 66 Partners pays out 101.2% 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 Tankers pays out -63.2% of its earnings in the form of a dividend. Phillips 66 Partners has raised its dividend for 3 consecutive years. Teekay Tankers is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
42.1% of Phillips 66 Partners shares are owned by institutional investors. Comparatively, 41.5% of Teekay Tankers shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Phillips 66 Partners and Teekay Tankers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Phillips 66 Partners||45.35%||23.01%||9.97%|
Earnings and Valuation
This table compares Phillips 66 Partners and Teekay Tankers’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Phillips 66 Partners||$781.00 million||6.17||$461.00 million||$2.43||19.19|
|Teekay Tankers||$447.92 million||0.56||$107.40 million||($0.19)||-8.05|
Phillips 66 Partners has higher revenue and earnings than Teekay Tankers. Teekay Tankers is trading at a lower price-to-earnings ratio than Phillips 66 Partners, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Phillips 66 Partners and Teekay Tankers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Phillips 66 Partners||1||1||8||0||2.70|
Phillips 66 Partners presently has a consensus target price of $57.13, suggesting a potential upside of 22.53%. Teekay Tankers has a consensus target price of $2.43, suggesting a potential upside of 59.04%. Given Teekay Tankers’ higher probable upside, analysts plainly believe Teekay Tankers is more favorable than Phillips 66 Partners.
Phillips 66 Partners beats Teekay Tankers on 11 of the 15 factors compared between the two stocks.
About Phillips 66 Partners
Phillips 66 Partners LP (Phillips 66) owns, operates, develops and acquires fee-based crude oil, refined petroleum product and natural gas liquids (NGL) pipelines, terminals and other transportation and midstream assets. The Company’s assets consist of systems, such as Clifton Ridge Crude System, Eagle Ford Gathering System, Ponca Crude System, Billings Crude System, Borger Crude System, Sweeny to Pasadena Products System, Hartford Connector Products System, Gold Line Products System, Cross-Channel Connector Products System, Ponca Products System, Billings Products System, Bayway Products System, Standish Pipeline, Borger Products System, River Parish NGL System, Medford Spheres, Bayway Rail Rack, Ferndale Rail Rack, Sand Hills/Southern Hills Joint Ventures, Explorer Pipeline Joint Venture, Bakken Joint Ventures, Bayou Bridge Pipeline Joint Venture, STACK Pipeline Joint Venture, and Sweeny Fractionator and Clemens Caverns.
About Teekay Tankers
Teekay Tankers Ltd. is an international provider of marine transportation to the oil industries. The Company’s business is to own crude oil and product tankers. The Company has two segments: conventional tanker and ship-to-ship transfer. Its conventional tanker segment consists of the operation of all of its tankers, including those employed on full service lightering contracts. Its ship-to-ship transfer segment consists of its lightering support services, including those provided to the Company’s conventional tanker segment as part of full service lightering operations and other related services. Its operations are managed by Teekay Tankers Management Services Ltd., which provides the Company with commercial, technical, administrative and strategic services. Its fleet consists of approximately 60 conventional vessels (including over 10 in-chartered vessels and an approximately 50%-owned very large crude carrier (VLCC)) and approximately six ship-to-ship (STS) support vessels.
Receive News & Ratings for Phillips 66 Partners LP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Phillips 66 Partners LP and related companies with MarketBeat.com's FREE daily email newsletter.