Western Refining Logistics, (NYSE: WNRL) and Teekay Tankers (NYSE:TNK) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Western Refining Logistics, pays an annual dividend of $1.87 per share and has a dividend yield of 7.3%. Teekay Tankers pays an annual dividend of $0.12 per share and has a dividend yield of 8.5%. Western Refining Logistics, pays out 187.0% 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. Western Refining Logistics, has increased its dividend for 2 consecutive years. Teekay Tankers is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Western Refining Logistics, has a beta of 0.8, suggesting that its stock price is 20% less 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.
Insider and Institutional Ownership
40.5% of Western Refining 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Western Refining Logistics, and Teekay Tankers’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Western Refining Logistics,||$2.41 billion||0.65||$128.20 million||$1.00||25.45|
|Teekay Tankers||$447.92 million||0.54||$107.40 million||($0.19)||-7.47|
Western Refining Logistics, has higher revenue and earnings than Teekay Tankers. Teekay Tankers is trading at a lower price-to-earnings ratio than Western Refining Logistics,, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Western Refining Logistics, and Teekay Tankers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Refining Logistics,||0||4||4||0||2.50|
Western Refining Logistics, presently has a consensus target price of $29.80, suggesting a potential upside of 17.09%. Teekay Tankers has a consensus target price of $2.40, suggesting a potential upside of 69.01%. Given Teekay Tankers’ higher probable upside, analysts plainly believe Teekay Tankers is more favorable than Western Refining Logistics,.
This table compares Western Refining Logistics, and Teekay Tankers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Refining Logistics,||3.05%||78.84%||12.72%|
Western Refining Logistics, beats Teekay Tankers on 11 of the 15 factors compared between the two stocks.
About Western Refining Logistics,
Western Refining Logistics, LP owns, operates, develops, and acquires logistics and related assets and businesses to include terminals, storage tanks, pipelines and other logistics assets related to the terminaling, transportation, storage and distribution of crude oil and refined products. The Company’s segments include logistics and wholesale. The Company operates its logistics business and wholesale business under commercial and service agreements with Western Refining, Inc. (Western). Its logistics assets consist of pipeline and gathering infrastructure and terminalling, transportation and storage assets in the Southwest and the Upper Great Plains region. Its wholesale business purchases its petroleum fuels from Western, and its lubricants and additional petroleum fuels from third-party suppliers.
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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