PBF Logistics (PBFX) versus Plains GP (PAGP) Critical Comparison
PBF Logistics (NYSE: PAGP) and Plains GP (NYSE:PAGP) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
PBF Logistics pays an annual dividend of $1.98 per share and has a dividend yield of 9.2%. Plains GP pays an annual dividend of $1.20 per share and has a dividend yield of 4.5%. PBF Logistics pays out 91.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Plains GP pays out 184.6% 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 Plains GP has increased its dividend for 3 consecutive years. PBF Logistics is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares PBF Logistics and Plains GP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings for PBF Logistics and Plains GP, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PBF Logistics currently has a consensus target price of $23.83, indicating a potential upside of 10.34%. Plains GP has a consensus target price of $27.14, indicating a potential upside of 1.13%. Given PBF Logistics’ stronger consensus rating and higher probable upside, analysts plainly believe PBF Logistics is more favorable than Plains GP.
Institutional and Insider Ownership
31.9% of PBF Logistics shares are owned by institutional investors. Comparatively, 90.9% of Plains GP shares are owned by institutional investors. 16.8% of Plains GP 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.
Volatility and Risk
PBF Logistics has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Plains GP has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Earnings and Valuation
This table compares PBF Logistics and Plains GP’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PBF Logistics||$254.81 million||3.84||$100.28 million||$2.17||9.95|
|Plains GP||$26.22 billion||0.16||-$731.00 million||$0.65||41.29|
PBF Logistics has higher earnings, but lower revenue than Plains GP. PBF Logistics is trading at a lower price-to-earnings ratio than Plains GP, indicating that it is currently the more affordable of the two stocks.
PBF Logistics beats Plains GP on 10 of the 17 factors compared between the two stocks.
About PBF Logistics
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.
About Plains GP
Plains GP Holdings, L.P. owns and operates midstream energy infrastructure in the United States and Canada. It operates through three segments: Transportation, Facilities, and Supply and Logistics. The Transportation segment engages in the transportation of crude oil and natural gas liquids (NGLs) on pipelines, gathering systems, trucks, and barges. As of December 31, 2017, this segment owned and leased assets comprising 18,700 miles of crude oil and NGL pipelines and gathering systems; 32 million barrels of above-ground tank capacity; 810 trailers; 60 transport and storage barges; and 30 transport tugs. The Facilities segment is involved in the provision of storage, terminalling, and throughput services primarily for crude oil, NGLs, and natural gas; NGL fractionation and isomerization services; and natural gas and condensate processing services. This segment owned and operated approximately 77 million barrels of crude oil storage capacity; 34 million barrels of NGL storage capacity; 67 billion cubic feet of natural gas storage capacity; 25 billion cubic feet of base gas; 9 natural gas processing plants; a condensate processing facility; 8 fractionation plants; 34 crude oil and NGL rail terminals; 5 marine facilities; and 1,000 miles of pipelines. The Supply and Logistics segment engages in merchant-related activities, including purchase of crude oil, as well as NGL from producers, refiners, processors, and other marketers; storage of NGL and natural gas; and resale and transport of crude oil and NGL. It owned 14 million barrels of crude oil and NGL linefill; 4 million barrels of crude oil and NGL linefill in pipelines owned by third parties and other inventory; 730 trucks and 900 trailers; and 10,100 crude oil and NGL railcars. The company offers logistics services, principally for crude oil, NGLs, and natural gas. PAA GP Holdings LLC operates as a general partner of the company. Plains GP Holdings, L.P. was founded in 2013 and is headquartered in Houston, Texas.
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