PBF Logistics (NYSE: PBFX) and Shell Midstream Partners (NYSE:SHLX) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
This is a breakdown of recent recommendations and price targets for PBF Logistics and Shell Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Shell Midstream Partners||0||3||6||0||2.67|
PBF Logistics presently has a consensus price target of $23.50, suggesting a potential upside of 18.99%. Shell Midstream Partners has a consensus price target of $29.50, suggesting a potential upside of 28.26%. Given Shell Midstream Partners’ higher probable upside, analysts plainly believe Shell Midstream Partners is more favorable than PBF Logistics.
This table compares PBF Logistics and Shell Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Shell Midstream Partners||70.78%||-300.60%||23.22%|
Institutional and Insider Ownership
33.7% of PBF Logistics shares are owned by institutional investors. Comparatively, 55.7% of Shell Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares PBF Logistics and Shell Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PBF Logistics||$254.81 million||3.25||$100.28 million||$2.17||9.10|
|Shell Midstream Partners||$470.10 million||10.95||$372.60 million||$1.28||17.97|
Shell Midstream Partners has higher revenue and earnings than PBF Logistics. PBF Logistics is trading at a lower price-to-earnings ratio than Shell Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
PBF Logistics has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Shell Midstream Partners has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
PBF Logistics pays an annual dividend of $1.96 per share and has a dividend yield of 9.9%. Shell Midstream Partners pays an annual dividend of $1.39 per share and has a dividend yield of 6.0%. PBF Logistics pays out 90.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shell Midstream Partners pays out 108.6% 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 increased its dividend for 3 consecutive years and Shell Midstream Partners has increased its dividend for 2 consecutive years. PBF Logistics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Shell Midstream Partners beats PBF Logistics on 10 of the 15 factors compared between the two stocks.
PBF Logistics Company Profile
PBF Logistics LP owns, leases, acquires, develops, and operates crude oil and refined petroleum products terminals, pipelines, storage facilities, and other logistics assets in the United States. It operates through Transportation and Terminaling, and Storage segments. The company's assets include Delaware City rail unloading terminal, a light crude oil rail unloading terminal, which serves Delaware City and Paulsboro refineries; Toledo truck unloading Terminal, that serves Toledo refinery; Delaware City west heavy unloading rack, a heavy crude oil unloading facility, which serves Delaware City refinery; and a terminaling facility that consists of 27 propane storage bullets and a truck loading facility. Its storage facility consists of 30 tanks for storing crude oil, refined products, and intermediates. PBF Logistics GP LLC serves as the general partner of the partnership. The company was founded in 2012 and is based in Parsippany, New Jersey.
Shell Midstream Partners Company Profile
Shell Midstream Partners, L.P. owns, operates, develops, and acquires pipelines and other midstream assets in the United States. Its crude oil pipeline systems include a 350 miles of Zydeco pipeline system; a 130-miles of delta pipeline; a 174-mile offshore Gulf of Mexico corridor pipeline; and a 75-mile offshore pipeline. The company also has interests in Mars pipeline system that is approximately 163 miles that delivers production received from the Mississippi Canyon area and Green Canyon and Walker Ridge to salt dome caverns in Clovelly, Louisiana; and a 105-mile Odyssey pipeline system, which transports crude oil in the offshore eastern Gulf of Mexico to markets in Louisiana. In addition, it has interests in a 367-mile Gulf of Mexico offshore pipeline that transports crude oil to Texas and Louisiana; a 70-mile crude oil pipeline that provides transportation for various oil producers in the eastern Gulf of Mexico; and a 89-mile crude oil Endymion pipeline system that offers transportation for various oil producers in the eastern Gulf of Mexico. In addition, it holds interests in Mars pipeline system that is approximately 163 miles that delivers production received from the Mississippi Canyon area and Green Canyon and Walker Ridge to salt dome caverns in Clovelly, Louisiana. The company's refined products pipeline systems consist of 160-mile Bengal pipeline system connecting four refineries in southern Louisiana to long-haul transportation pipelines; approximately 5,500 miles of pipeline connecting refineries along the Gulf Coast to approximately 265 marketing terminals; and Explorer pipeline system, an 1,830-mile common carrier petroleum products pipeline system, which extends from the Gulf Coast to the Midwest. Shell Midstream Partners GP LLC serves as the general partner of Shell Midstream Partners, L.P. The company was founded in 2014 and is based in Houston, Texas. Shell Midstream Partners, L.P. operates as a subsidiary of Shell Pipeline Company LP.
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