Financial Analysis: Markwest Energy Partners (MWE) vs. PBF Energy (PBF)
Markwest Energy Partners (NYSE: MWE) and PBF Energy (NYSE:PBF) are both mid-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
This table compares Markwest Energy Partners and PBF Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Markwest Energy Partners||10.37%||2.42%||1.71%|
This is a breakdown of recent ratings and price targets for Markwest Energy Partners and PBF Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Markwest Energy Partners||0||0||0||0||N/A|
PBF Energy has a consensus price target of $29.13, suggesting a potential downside of 17.84%. Given PBF Energy’s higher probable upside, analysts plainly believe PBF Energy is more favorable than Markwest Energy Partners.
PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 3.4%. Markwest Energy Partners does not pay a dividend. PBF Energy pays out 57.4% of its earnings in the form of a dividend. Markwest Energy Partners has increased its dividend for 6 consecutive years.
Earnings and Valuation
This table compares Markwest Energy Partners and PBF Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Markwest Energy Partners||N/A||N/A||N/A||($0.26)||-160.19|
|PBF Energy||$15.92 billion||0.25||$170.81 million||$2.09||16.96|
PBF Energy has higher revenue and earnings than Markwest Energy Partners. Markwest Energy Partners is trading at a lower price-to-earnings ratio than PBF Energy, indicating that it is currently the more affordable of the two stocks.
PBF Energy beats Markwest Energy Partners on 6 of the 11 factors compared between the two stocks.
About Markwest Energy Partners
MarkWest Energy Partners, L.P. (MarkWest) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. The Company operates in four segments: Marcellus, Utica, Northeast and Southwest. The Marcellus segment provides integrated natural gas midstream services in southwestern Pennsylvania and northern West Virginia. The Company’s MarkWest Utica EMG provides gathering, processing, fractionation and marketing services. The Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing complexes, an NGL pipeline and the Siloam fractionation facility. The Company owns a system that consists of natural gas gathering pipelines, centralized compressor stations, two natural gas processing complexes and two NGL pipelines.
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.
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