Critical Comparison: Western Gas Equity Partners, (WGP) vs. PBF Energy (PBF)
Western Gas Equity Partners, (NYSE: WGP) and PBF Energy (NYSE:PBF) are both mid-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitabiliy, analyst recommendations and valuation.
Insider & Institutional Ownership
18.5% of Western Gas Equity Partners, shares are held by institutional investors. 2.6% of PBF Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations for Western Gas Equity Partners, and PBF Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Gas Equity Partners,||0||2||6||0||2.75|
Western Gas Equity Partners, currently has a consensus target price of $51.25, indicating a potential upside of 26.39%. PBF Energy has a consensus target price of $23.33, indicating a potential upside of 5.87%. Given Western Gas Equity Partners,’s stronger consensus rating and higher probable upside, research analysts plainly believe Western Gas Equity Partners, is more favorable than PBF Energy.
Western Gas Equity Partners, pays an annual dividend of $2.11 per share and has a dividend yield of 5.2%. PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 5.4%. Western Gas Equity Partners, pays out 129.4% 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 Energy pays out -363.6% of its earnings in the form of a dividend. Western Gas Equity Partners, has raised its dividend for 3 consecutive years. PBF Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Western Gas Equity Partners, and PBF Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Gas Equity Partners,||17.50%||8.78%||4.69%|
Volatility & Risk
Western Gas Equity Partners, has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, PBF Energy has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.
Valuation and Earnings
This table compares Western Gas Equity Partners, and PBF Energy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Western Gas Equity Partners,||$2.03 billion||4.37||$944.00 million||$1.63||24.88|
|PBF Energy||$17.87 billion||0.14||$216.50 million||($0.33)||-66.79|
Western Gas Equity Partners, has higher revenue, but lower earnings than PBF Energy. PBF Energy is trading at a lower price-to-earnings ratio than Western Gas Equity Partners,, indicating that it is currently the more affordable of the two stocks.
Western Gas Equity Partners, beats PBF Energy on 12 of the 16 factors compared between the two stocks.
About Western Gas Equity Partners,
Western Gas Equity Partners, LP is a limited partnership. The Company is formed to own approximately three types of partnership interests in Western Gas Partners, LP (WES). WES is an master limited partnership (MLP) engaged in the business of gathering, compressing, treating, processing and transporting natural gas, and gathering, stabilizing and transporting condensate, natural gas liquids (NGLs) and crude oil. WES provides these midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. Its assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas. The Bison treating facility treats and compresses gas from coal-bed methane wells in the Powder River Basin of Wyoming. MIGC, LLC receives gas from various coal-bed methane gathering systems in the Powder River Basin and the Hilight system, as well as from WBI Energy Transmission, Inc.
About PBF Energy
PBF Energy Inc. (PBF Energy) is a holding company. The Company is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company operates through two segments: Refining and Logistics. It sells its products throughout the Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other regions of the United States and Canada, and ships products to other international destinations. As of December 31, 2016, it owned and operated five domestic oil refineries and related assets. As of December 31, 2016, its refineries had a combined processing capacity, known as throughput, of approximately 900,000 barrels per day (bpd) and a weighted-average Nelson Complexity Index of approximately 12.2. As of December 31, 2016, the Company owned and operated five refineries providing geographic and market diversity.
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