Andeavor Logistics (NYSE: ENB) and Enbridge (NYSE:ENB) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Volatility and Risk

Andeavor Logistics has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Enbridge has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Profitability

This table compares Andeavor Logistics and Enbridge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Andeavor Logistics 16.45% 18.81% 6.35%
Enbridge 5.99% 8.47% 3.05%

Dividends

Andeavor Logistics pays an annual dividend of $4.12 per share and has a dividend yield of 8.4%. Enbridge pays an annual dividend of $2.04 per share and has a dividend yield of 6.0%. Andeavor Logistics pays out 164.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enbridge pays out 132.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enbridge has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Andeavor Logistics and Enbridge, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Andeavor Logistics 1 10 6 0 2.29
Enbridge 0 3 4 0 2.57

Andeavor Logistics currently has a consensus price target of $52.31, indicating a potential upside of 6.37%. Enbridge has a consensus price target of $51.40, indicating a potential upside of 51.67%. Given Enbridge’s stronger consensus rating and higher probable upside, analysts plainly believe Enbridge is more favorable than Andeavor Logistics.

Institutional & Insider Ownership

38.1% of Andeavor Logistics shares are owned by institutional investors. Comparatively, 59.1% of Enbridge shares are owned by institutional investors. 0.2% of Andeavor Logistics shares are owned by company insiders. Comparatively, 0.5% of Enbridge shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Andeavor Logistics and Enbridge’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Andeavor Logistics $3.21 billion 3.32 $373.00 million $2.51 19.59
Enbridge $34.94 billion 1.66 $2.21 billion $1.54 22.01

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

Summary

Andeavor Logistics beats Enbridge on 9 of the 17 factors compared between the two stocks.

Andeavor Logistics Company Profile

Andeavor Logistics LP operates as a diversified midstream company in the United States. The Terminalling and Transportation segment comprises the Northwest Products Pipeline, including a regulated common carrier products pipeline running from Salt Lake City, Utah to Spokane, Washington and a jet fuel pipeline to the Salt Lake City International Airport; a regulated common carrier refined products pipeline system connecting its refinery to its terminals in Anchorage, Alaska; tankage and related equipment at the refinery; and crude oil and refined products terminals and storage facilities in the western, and southwest and midwestern U.S. This segment also consists of marine terminals in California and Washington; a rail-car unloading and petroleum coke handling facilities; marine terminals; a manifest rail facility; an asphalt trucking operation; a petroleum coke handling and storage facility; asphalt terminalling and processing services; and other pipelines, which transport products and crude oil from its refineries to nearby facilities in Salt Lake City and Los Angeles. The Gathering and Processing segment includes crude oil and natural gas pipeline gathering systems in the Bakken Shale/Williston Basin area of North Dakota and Montana; the Green River Basin, Uinta Basin, and Vermillion Basin in the states of Utah, Colorado, and Wyoming; the Delaware Basin in the Permian Basin area of West Texas and Southern New Mexico; and the Four Corners area of Northwestern New Mexico, as well as crude trucking operations, and gas processing and fractionation complexes. The Wholesale segment consists of bulk petroleum distribution facilities and a fleet of refined product delivery trucks. Tesoro Logistics GP, LLC operates as the general partner of the company. The company was formerly known as Tesoro Logistics LP and changed its name to Andeavor Logistics LP in August 2017. Andeavor Logistics LP was founded in 2010 and is headquartered in San Antonio, Texas.

Enbridge Company Profile

Enbridge Inc. operates as an energy infrastructure company in Canada and the United States. The company operates in five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, Green Power and Transmission, and Energy Services. The Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals. The Gas Transmission and Midstream segment owns interests in natural gas pipelines, and gathering and processing facilities. The Gas Distribution segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as in Quebec and New Brunswick. The Green Power and Transmission segment operates renewable energy assets, such as wind, solar, geothermal, and waste heat recovery facilities; and transmission facilities in the provinces of Alberta, Ontario, and Quebec, Canada; and in Colorado, Texas, Indiana, and West Virginia, the United States. The Energy Services segment provides energy supply and marketing services to refiners, producers, and other customers; crude oil and NGL marketing services; physical barrel marketing services; natural gas marketing services; and natural gas supply, transportation, balancing, and storage services for third parties. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

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