Critical Contrast: Andeavor Logistics (ANDX) and Its Peers

Andeavor Logistics (NYSE: ANDX) is one of 50 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it contrast to its peers? We will compare Andeavor Logistics to related companies based on the strength of its valuation, dividends, analyst recommendations, risk, earnings, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Andeavor Logistics and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Andeavor Logistics 0 3 6 0 2.67
Andeavor Logistics Competitors 309 1846 2434 86 2.49

Andeavor Logistics presently has a consensus price target of $55.38, indicating a potential upside of 16.19%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 19.58%. Given Andeavor Logistics’ peers higher probable upside, analysts clearly believe Andeavor Logistics has less favorable growth aspects than its peers.

Risk & Volatility

Andeavor Logistics has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Andeavor Logistics’ peers have a beta of 1.33, suggesting that their average share price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares Andeavor Logistics and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Andeavor Logistics $1.22 billion $315.00 million 20.28
Andeavor Logistics Competitors $4.88 billion $288.25 million 21.45

Andeavor Logistics’ peers have higher revenue, but lower earnings than Andeavor Logistics. Andeavor Logistics is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Andeavor Logistics pays an annual dividend of $3.94 per share and has a dividend yield of 8.3%. Andeavor Logistics pays out 167.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.5% and pay out 160.1% of their earnings in the form of a dividend.

Profitability

This table compares Andeavor Logistics and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Andeavor Logistics 21.85% 21.26% 6.65%
Andeavor Logistics Competitors 18.45% 87.77% 5.91%

Insider & Institutional Ownership

34.9% of Andeavor Logistics shares are owned by institutional investors. Comparatively, 57.5% of shares of all “Oil & Gas Transportation Services” companies are owned by institutional investors. 0.2% of Andeavor Logistics shares are owned by company insiders. Comparatively, 9.2% of shares of all “Oil & Gas Transportation Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Andeavor Logistics peers beat Andeavor Logistics on 9 of the 15 factors compared.

About Andeavor Logistics

Andeavor Logistics LP, formerly Tesoro Logistics LP, is a full-service logistics company operating in the western and mid-continent regions of the United States. The Company operates through three segments. Its Gathering segment consists of crude oil, natural gas and produced water gathering systems in the Bakken Region and Rockies Region. Its Processing segment consists of the Vermillion processing complex, the Uinta Basin processing complex, the Blacks Fork processing complex and the Emigrant Trail processing complex. Its Terminalling and Transportation segment consists of the Northwest Products Pipeline, which includes a regulated common carrier products, a regulated common carrier refined products pipeline system connecting Tesoro Corporation’s Kenai refinery to Anchorage, Alaska, and crude oil and refined products terminals and storage facilities in the western and midwestern United States; marine terminals in California; a petroleum coke handling and storage facility.

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