PBF Logistics (NYSE: PBFX) and Phillips 66 Partners (NYSE:PSXP) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Dividends

PBF Logistics pays an annual dividend of $1.92 per share and has a dividend yield of 9.6%. Phillips 66 Partners pays an annual dividend of $2.58 per share and has a dividend yield of 5.3%. PBF Logistics pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips 66 Partners pays out 108.9% 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 Logistics has raised its dividend for 2 consecutive years and Phillips 66 Partners has raised its dividend for 3 consecutive years. PBF Logistics is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

PBF Logistics has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Phillips 66 Partners has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares PBF Logistics and Phillips 66 Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PBF Logistics 38.76% 64.05% 12.90%
Phillips 66 Partners 42.19% 23.56% 9.55%

Valuation and Earnings

This table compares PBF Logistics and Phillips 66 Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PBF Logistics $187.34 million 4.48 $75.94 million $2.24 8.95
Phillips 66 Partners $873.00 million 6.74 $301.00 million $2.37 20.43

Phillips 66 Partners has higher revenue and earnings than PBF Logistics. PBF Logistics 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.

Analyst Recommendations

This is a summary of current ratings and price targets for PBF Logistics and Phillips 66 Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Logistics 0 1 0 0 2.00
Phillips 66 Partners 0 2 8 0 2.80

PBF Logistics presently has a consensus price target of $24.00, indicating a potential upside of 19.70%. Phillips 66 Partners has a consensus price target of $58.89, indicating a potential upside of 21.62%. Given Phillips 66 Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Phillips 66 Partners is more favorable than PBF Logistics.

Institutional & Insider Ownership

37.4% of PBF Logistics shares are owned by institutional investors. Comparatively, 37.2% of Phillips 66 Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Phillips 66 Partners beats PBF Logistics on 11 of the 16 factors compared between the two stocks.

PBF Logistics Company Profile

PBF Logistics LP owns or leases, operates, develops and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. The Company operates through two segments: Transportation and Terminaling, and Storage. The Transportation and Terminaling segment consists of various assets, including Delaware City Rail Unloading Terminal (DCR Rail Terminal), Toledo Truck Unloading Terminal (Toledo Truck Terminal), Delaware City West Heavy Unloading Rack (the DCR West Rack), East Coast Terminals and Torrance Valley Pipeline. The Storage Segment includes the Toledo Storage Facility, excluding the propane truck loading facility. The storage facility at its Toledo Storage Facility consisted of 30 tanks for storing crude oil, refined products and intermediates, as of December 31, 2016. PBF Logistics GP LLC (PBF GP) is its general partner. PBF GP is owned by PBF Energy Company LLC (PBF LLC).

Phillips 66 Partners Company Profile

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.

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