PBF Logistics (NYSE: PBFX) and Ship Finance International Limited (NYSE:SFL) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Dividends

PBF Logistics pays an annual dividend of $1.88 per share and has a dividend yield of 9.0%. Ship Finance International Limited pays an annual dividend of $1.40 per share and has a dividend yield of 9.8%. PBF Logistics pays out 89.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ship Finance International Limited pays out 113.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PBF Logistics has raised its dividend for 5 consecutive years and Ship Finance International Limited has raised its dividend for 2 consecutive years.

Volatility and Risk

PBF Logistics has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Ship Finance International Limited has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PBF Logistics and Ship Finance International Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Logistics 0 1 0 0 2.00
Ship Finance International Limited 0 1 0 0 2.00

PBF Logistics currently has a consensus target price of $24.00, suggesting a potential upside of 14.29%. Ship Finance International Limited has a consensus target price of $15.00, suggesting a potential upside of 4.90%. Given PBF Logistics’ higher possible upside, analysts clearly believe PBF Logistics is more favorable than Ship Finance International Limited.

Profitability

This table compares PBF Logistics and Ship Finance International Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PBF Logistics 39.25% 62.40% 12.25%
Ship Finance International Limited 29.59% 11.26% 4.24%

Institutional & Insider Ownership

42.5% of PBF Logistics shares are held by institutional investors. Comparatively, 26.4% of Ship Finance International Limited shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares PBF Logistics and Ship Finance International Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PBF Logistics $232.93 million 3.78 $156.03 million $2.11 9.95
Ship Finance International Limited $382.53 million 3.50 $238.54 million $1.23 11.63

Ship Finance International Limited has higher revenue and earnings than PBF Logistics. PBF Logistics is trading at a lower price-to-earnings ratio than Ship Finance International Limited, indicating that it is currently the more affordable of the two stocks.

Summary

PBF Logistics beats Ship Finance International Limited on 9 of the 14 factors compared between the two stocks.

About PBF Logistics

PBF Logistics LP owns or leases, operates, develops and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. The Company operates through two segments: Transportation and Terminaling, and Storage. The Transportation and Terminaling segment consists of various assets, including Delaware City Rail Unloading Terminal (DCR Rail Terminal), Toledo Truck Unloading Terminal (Toledo Truck Terminal), Delaware City West Heavy Unloading Rack (the DCR West Rack), East Coast Terminals and Torrance Valley Pipeline. The Storage Segment includes the Toledo Storage Facility, excluding the propane truck loading facility. The storage facility at its Toledo Storage Facility consisted of 30 tanks for storing crude oil, refined products and intermediates, as of December 31, 2016. PBF Logistics GP LLC (PBF GP) is its general partner. PBF GP is owned by PBF Energy Company LLC (PBF LLC).

About Ship Finance International Limited

Ship Finance International Limited is a holding, and international ship owning and chartering company. The Company is engaged in the ownership and operation of vessels and offshore related assets, and also involved in the charter, purchase and sale of assets. Its assets consist of approximately 20 oil tankers, over 20 dry bulk carriers, approximately 20 container vessels, including a newbuilding, two car carriers, two jack-up drilling rigs, two ultra-deepwater drilling units, five offshore supply vessels, two chemical tankers and two newbuilding oil product tankers. Its oil tankers, chemical tankers and oil product tankers are all double-hull vessels. It has over nine asset types, including crude oil tankers, oil product tankers, chemical tankers, container vessels, car carriers, dry bulk carriers, jack-up drilling rigs, ultra-deepwater drilling units and offshore supply vessels. Its assets consist of a fleet of Suezmax tankers, crude carriers and oil/bulk/ore carriers.

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