Critical Review: PrimeEnergy (NASDAQ:PNRG) versus PBF Energy (NYSE:PBF)

PBF Energy (NYSE:PBF – Get Free Report) and PrimeEnergy (NASDAQ:PNRG – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Institutional & Insider Ownership

96.3% of PBF Energy shares are owned by institutional investors. 5.5% of PBF Energy shares are owned by insiders. Comparatively, 65.3% of PrimeEnergy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for PBF Energy and PrimeEnergy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Energy 3 8 3 1 2.13
PrimeEnergy 0 2 0 0 2.00

PBF Energy presently has a consensus price target of $65.55, indicating a potential downside of 28.13%. Given PBF Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe PBF Energy is more favorable than PrimeEnergy.

Valuation & Earnings

This table compares PBF Energy and PrimeEnergy”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PBF Energy $29.33 billion 0.37 -$158.50 million $11.30 8.07
PrimeEnergy $189.05 million 1.83 $26.31 million $10.38 21.11

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

Risk & Volatility

PBF Energy has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, PrimeEnergy has a beta of -0.18, indicating that its share price is 118% less volatile than the S&P 500.

Profitability

This table compares PBF Energy and PrimeEnergy’s 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%
PrimeEnergy 13.87% 11.47% 7.67%

Summary

PBF Energy beats PrimeEnergy on 8 of the 15 factors compared between the two stocks.

About PBF Energy

(Get Free Report)

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 PrimeEnergy

(Get Free Report)

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.

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