PBF Energy (NYSE: PBF) and Suncor Energy (NYSE:SU) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Volatility and Risk

PBF Energy has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for PBF Energy and Suncor Energy , as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Energy 1 8 5 0 2.29
Suncor Energy 0 3 13 1 2.88

PBF Energy presently has a consensus price target of $24.00, indicating a potential downside of 4.04%. Suncor Energy has a consensus price target of $43.75, indicating a potential upside of 33.03%. Given Suncor Energy ‘s stronger consensus rating and higher probable upside, analysts clearly believe Suncor Energy is more favorable than PBF Energy.

Earnings & Valuation

This table compares PBF Energy and Suncor Energy ‘s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PBF Energy $19.03 billion 0.14 $189.02 million ($0.33) -75.79
Suncor Energy $23.90 billion 2.28 $7.27 billion $1.22 26.96

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

Dividends

PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 4.8%. Suncor Energy pays an annual dividend of $1.03 per share and has a dividend yield of 3.1%. PBF Energy pays out -363.6% of its earnings in the form of a dividend. Suncor Energy pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PBF Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares PBF Energy and Suncor Energy ‘s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PBF Energy -0.23% -4.98% -1.61%
Suncor Energy 8.85% 4.52% 2.29%

Institutional and Insider Ownership

64.1% of Suncor Energy shares are owned by institutional investors. 2.6% of PBF Energy shares are owned by insiders. Comparatively, 1.0% of Suncor Energy shares are owned by insiders. 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.

Summary

Suncor Energy beats PBF Energy on 12 of the 16 factors compared between the two stocks.

About PBF Energy

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.

About Suncor Energy

Suncor Energy Inc. (Suncor) is an integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. Suncor also conducts energy trading activities.

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