Critical Analysis: Enbridge (ENB) and Western Refining Logistics (WNRL)
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.
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|
|Western Refining Logistics||0||1||0||0||2.00|
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.
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|
|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.
Enbridge beats Western Refining Logistics on 9 of the 14 factors compared between the two stocks.
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.
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