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

Risk and Volatility

PBF Energy has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Sasol has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for PBF Energy and Sasol, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Energy 1 7 5 0 2.31
Sasol 0 1 2 0 2.67

PBF Energy currently has a consensus price target of $23.67, suggesting a potential downside of 12.60%. Given PBF Energy’s higher probable upside, research analysts clearly believe PBF Energy is more favorable than Sasol.

Insider and Institutional Ownership

1.8% of Sasol shares are owned by institutional investors. 2.6% of PBF Energy shares are owned by company insiders. Comparatively, 1.0% of Sasol shares are owned 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.

Profitability

This table compares PBF Energy and Sasol’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%
Sasol N/A N/A N/A

Earnings & Valuation

This table compares PBF Energy and Sasol’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 0.16 $189.02 million ($0.33) -82.06
Sasol $13.33 billion 1.35 $3.92 billion N/A N/A

Sasol has higher revenue, but lower earnings than PBF Energy.

Dividends

PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 4.4%. Sasol pays an annual dividend of $0.74 per share and has a dividend yield of 2.7%. PBF Energy pays out -363.6% of its earnings in the form of a dividend.

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 Sasol

Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.

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