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

Insider and Institutional Ownership

39.0% of Teekay Tankers shares are held by institutional investors. Comparatively, 42.5% of PBF Logistics shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Teekay Tankers and PBF Logistics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Teekay Tankers $447.92 million 0.53 $107.40 million ($0.19) -7.37
PBF Logistics $232.93 million 3.82 $156.03 million $2.11 10.07

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.

Volatility & Risk

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

Dividends

Teekay Tankers pays an annual dividend of $0.12 per share and has a dividend yield of 8.6%. PBF Logistics pays an annual dividend of $1.88 per share and has a dividend yield of 8.8%. Teekay Tankers pays out -63.2% of its earnings in the form of a dividend. 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 has increased its dividend for 2 consecutive years.

Profitability

This table compares Teekay Tankers and PBF Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay Tankers -7.38% 0.39% 0.19%
PBF Logistics 43.53% N/A 14.50%

Analyst Recommendations

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

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

Teekay Tankers currently has a consensus price target of $2.40, indicating a potential upside of 71.43%. PBF Logistics has a consensus price target of $24.00, indicating a potential upside of 12.94%. Given Teekay Tankers’ higher possible upside, equities analysts clearly believe Teekay Tankers is more favorable than PBF Logistics.

Summary

PBF Logistics beats Teekay Tankers on 8 of the 14 factors compared between the two stocks.

Teekay Tankers Company Profile

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.

PBF Logistics Company Profile

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).

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