Global Partners (NYSE:GLP) & PBF Energy (NYSE:PBF) Head to Head Contrast

PBF Energy (NYSE:PBF) and Global Partners (NYSE:GLP) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Dividends

PBF Energy pays an annual dividend of $1.10 per share and has a dividend yield of 1.6%. Global Partners pays an annual dividend of $3.12 per share and has a dividend yield of 6.1%. PBF Energy pays out 9.7% of its earnings in the form of a dividend. Global Partners pays out 63.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PBF Energy has raised its dividend for 2 consecutive years and Global Partners has raised its dividend for 5 consecutive years. Global Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

96.3% of PBF Energy shares are owned by institutional investors. Comparatively, 38.1% of Global Partners shares are owned by institutional investors. 5.5% of PBF Energy shares are owned by company insiders. Comparatively, 41.5% of Global Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PBF Energy and Global Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PBF Energy	4	8	2	1	2.00
Global Partners	0	2	1	0	2.33

PBF Energy presently has a consensus price target of $56.58, suggesting a potential downside of 19.30%. Global Partners has a consensus price target of $46.00, suggesting a potential downside of 10.40%. Given Global Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Global Partners is more favorable than PBF Energy.

Volatility and Risk

PBF Energy has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, Global Partners has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Valuation & Earnings

This table compares PBF Energy and Global Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PBF Energy	$34.37 billion	0.24	-$158.50 million	$11.30	6.20
Global Partners	$18.56 billion	0.09	$79.22 million	$4.91	10.46

Global Partners has lower revenue, but higher earnings than PBF Energy. PBF Energy is trading at a lower price-to-earnings ratio than Global Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares PBF Energy and Global Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PBF Energy	3.94%	11.27%	4.67%
Global Partners	0.91%	30.87%	4.92%

Summary

Global Partners beats PBF Energy on 10 of the 18 factors compared between the two stocks.

About PBF Energy

PBF Energy Inc., through its subsidiaries, engages in refining and supplying petroleum products. The company operates in two segments, Refining and Logistics. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, petrochemical feedstocks, blending components, and other petroleum products from crude oil. The company sells its products in Northeast, Midwest, Gulf Coast, and West Coast of the United States, as well as in other regions of the United States, Canada, Mexico, and internationally. It is also involved in the provision of various rail, truck, and marine terminaling services, as well as pipeline transportation and storage services. The company was founded in 2008 and is based in Parsippany, New Jersey.

About Global Partners

Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial. The Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, and residual oil to home heating oil and propane retailers and wholesale distributors. This segment also transports the products by railcars, barges, trucks and/or pipelines. Its Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector, as well as to commercial and industrial end-users; and sells custom blended fuels. The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.