Head-To-Head Survey: Teekay Tankers (TNK) and PBF Logistics (PBFX)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for PBF Logistics and Teekay Tankers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Logistics 0 1 0 0 2.00
Teekay Tankers 1 2 0 0 1.67

PBF Logistics currently has a consensus target price of $24.00, suggesting a potential upside of 14.29%. Teekay Tankers has a consensus target price of $2.40, suggesting a potential upside of 51.90%. Given Teekay Tankers’ higher probable upside, analysts plainly believe Teekay Tankers is more favorable than PBF Logistics.

Earnings & Valuation

This table compares PBF Logistics and Teekay Tankers’ top-line 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
Teekay Tankers $447.92 million 0.60 $107.40 million ($0.19) -8.32

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

Insider & Institutional Ownership

42.5% of PBF Logistics shares are held by institutional investors. Comparatively, 39.0% of Teekay Tankers shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

PBF Logistics has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500.

Profitability

This table compares PBF Logistics and Teekay Tankers’ 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%
Teekay Tankers -7.38% 0.39% 0.19%

Dividends

PBF Logistics pays an annual dividend of $1.88 per share and has a dividend yield of 9.0%. Teekay Tankers pays an annual dividend of $0.12 per share and has a dividend yield of 7.6%. 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. Teekay Tankers pays out -63.2% of its earnings in the form of a dividend. PBF Logistics has raised its dividend for 2 consecutive years. PBF Logistics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

PBF Logistics beats Teekay Tankers on 10 of the 15 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 Teekay Tankers

Teekay Tankers Ltd. is an international provider of marine transportation to the oil industries. The Company’s business is to own crude oil and product tankers. The Company has two segments: conventional tanker and ship-to-ship transfer. Its conventional tanker segment consists of the operation of all of its tankers, including those employed on full service lightering contracts. Its ship-to-ship transfer segment consists of its lightering support services, including those provided to the Company’s conventional tanker segment as part of full service lightering operations and other related services. Its operations are managed by Teekay Tankers Management Services Ltd., which provides the Company with commercial, technical, administrative and strategic services. Its fleet consists of approximately 60 conventional vessels (including over 10 in-chartered vessels and an approximately 50%-owned very large crude carrier (VLCC)) and approximately six ship-to-ship (STS) support vessels.

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