PBF Energy (NYSE:PBF – Get Free Report) and Teekay Tankers (NYSE:TNK – Get Free Report) are both mid-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Risk and Volatility
PBF Energy has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500.
Dividends
PBF Energy pays an annual dividend of $1.10 per share and has a dividend yield of 1.5%. Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. PBF Energy pays out 9.7% of its earnings in the form of a dividend. Teekay Tankers pays out 5.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PBF Energy has raised its dividend for 2 consecutive years and Teekay Tankers has raised its dividend for 2 consecutive years.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PBF Energy | $29.33 billion | 0.29 | -$158.50 million | $11.30 | 6.43 |
| Teekay Tankers | $951.80 million | 3.25 | $351.19 million | $16.97 | 5.28 |
Teekay Tankers has lower revenue, but higher earnings than PBF Energy. Teekay Tankers is trading at a lower price-to-earnings ratio than PBF Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PBF Energy and Teekay Tankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PBF Energy | 3.94% | 11.27% | 4.67% |
| Teekay Tankers | 51.35% | 22.11% | 20.23% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for PBF Energy and Teekay Tankers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PBF Energy | 5 | 8 | 2 | 1 | 1.94 |
| Teekay Tankers | 1 | 3 | 3 | 1 | 2.50 |
PBF Energy presently has a consensus target price of $50.92, suggesting a potential downside of 29.88%. Teekay Tankers has a consensus target price of $77.00, suggesting a potential downside of 13.99%. Given Teekay Tankers’ stronger consensus rating and higher probable upside, analysts plainly believe Teekay Tankers is more favorable than PBF Energy.
Insider and Institutional Ownership
96.3% of PBF Energy shares are held by institutional investors. Comparatively, 52.7% of Teekay Tankers shares are held by institutional investors. 5.5% of PBF Energy shares are held by insiders. Comparatively, 1.9% of Teekay Tankers shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Teekay Tankers beats PBF Energy on 10 of the 16 factors compared between the two stocks.
About PBF Energy
PBF Energy Inc., through its subsidiaries, engages in refining and supplying petroleum products. The company operates in two segments, Refining and Logistics. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, petrochemical feedstocks, blending components, and other petroleum products from crude oil. The company sells its products in Northeast, Midwest, Gulf Coast, and West Coast of the United States, as well as in other regions of the United States, Canada, Mexico, and internationally. It is also involved in the provision of various rail, truck, and marine terminaling services, as well as pipeline transportation and storage services. The company was founded in 2008 and is based in Parsippany, New Jersey.
About Teekay Tankers
Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.
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