Enbridge (NYSE: ENB) and Western Refining Logistics (NYSE:WNRL) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Enbridge and Western Refining Logistics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enbridge 0 6 2 0 2.25
Western Refining Logistics 0 1 0 0 2.00

Enbridge currently has a consensus target price of $52.00, indicating a potential upside of 28.68%. Given Enbridge’s stronger consensus rating and higher probable upside, research analysts clearly believe Enbridge is more favorable than Western Refining Logistics.

Dividends

Enbridge pays an annual dividend of $1.92 per share and has a dividend yield of 4.8%. Western Refining Logistics pays an annual dividend of $1.87 per share and has a dividend yield of 7.8%. Enbridge pays out 123.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Refining Logistics pays out 174.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enbridge has increased its dividend for 3 consecutive years and Western Refining Logistics has increased its dividend for 5 consecutive years. Western Refining Logistics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Enbridge and Western Refining Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enbridge 7.49% 5.62% 1.87%
Western Refining Logistics 3.05% 78.84% 12.72%

Earnings and Valuation

This table compares Enbridge and Western Refining Logistics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enbridge $25.89 billion 2.58 $1.56 billion $1.56 25.90
Western Refining Logistics N/A N/A N/A $1.07 22.29

Enbridge has higher revenue and earnings than Western Refining Logistics. Western Refining Logistics is trading at a lower price-to-earnings ratio than Enbridge, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

62.1% of Enbridge shares are owned by institutional investors. Comparatively, 40.1% of Western Refining Logistics shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Enbridge has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Western Refining Logistics has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Summary

Enbridge beats Western Refining Logistics on 9 of the 14 factors compared between the two stocks.

About Enbridge

Enbridge Inc. is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System. Gas Distribution consists of its natural gas utility operations, the core of which is Enbridge Gas Distribution Inc. Green Power and Transmission consists of its investments in renewable energy assets and transmission facilities. Renewable energy assets consist of wind, solar, geothermal and waste heat recovery facilities in Canada. Energy Services undertake physical commodity marketing activity and logistical services, and oversee refinery supply services.

About Western Refining Logistics

Western Refining Logistics, LP owns, operates, develops, and acquires logistics and related assets and businesses to include terminals, storage tanks, pipelines and other logistics assets related to the terminaling, transportation, storage and distribution of crude oil and refined products. The Company’s segments include logistics and wholesale. The Company operates its logistics business and wholesale business under commercial and service agreements with Western Refining, Inc. (Western). Its logistics assets consist of pipeline and gathering infrastructure and terminalling, transportation and storage assets in the Southwest and the Upper Great Plains region. Its wholesale business purchases its petroleum fuels from Western, and its lubricants and additional petroleum fuels from third-party suppliers.

Receive News & Ratings for Enbridge Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enbridge and related companies with MarketBeat.com's FREE daily email newsletter.