PBF Logistics (NYSE: MMP) and Magellan Midstream Partners (NYSE:MMP) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
This table compares PBF Logistics and Magellan Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magellan Midstream Partners||33.54%||42.90%||12.48%|
This is a summary of current ratings and price targets for PBF Logistics and Magellan Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magellan Midstream Partners||3||6||5||0||2.14|
PBF Logistics currently has a consensus target price of $23.83, suggesting a potential upside of 10.60%. Magellan Midstream Partners has a consensus target price of $74.83, suggesting a potential upside of 5.32%. Given PBF Logistics’ stronger consensus rating and higher probable upside, analysts clearly believe PBF Logistics is more favorable than Magellan Midstream Partners.
Institutional and Insider Ownership
31.9% of PBF Logistics shares are owned by institutional investors. Comparatively, 62.9% of Magellan Midstream Partners shares are owned by institutional investors. 0.3% of Magellan Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
PBF Logistics has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Magellan Midstream Partners has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Valuation and Earnings
This table compares PBF Logistics and Magellan Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PBF Logistics||$254.81 million||3.84||$100.28 million||$2.17||9.93|
|Magellan Midstream Partners||$2.51 billion||6.47||$869.53 million||$3.81||18.65|
Magellan Midstream Partners has higher revenue and earnings than PBF Logistics. PBF Logistics is trading at a lower price-to-earnings ratio than Magellan Midstream Partners, indicating that it is currently the more affordable of the two stocks.
PBF Logistics pays an annual dividend of $1.98 per share and has a dividend yield of 9.2%. Magellan Midstream Partners pays an annual dividend of $3.83 per share and has a dividend yield of 5.4%. PBF Logistics pays out 91.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Magellan Midstream Partners pays out 100.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PBF Logistics has increased its dividend for 3 consecutive years and Magellan Midstream Partners has increased its dividend for 8 consecutive years. PBF Logistics is clearly the better dividend stock, given its higher yield and lower payout ratio.
Magellan Midstream Partners beats PBF Logistics on 11 of the 17 factors compared between the two stocks.
PBF Logistics Company Profile
PBF Logistics LP owns, leases, acquires, develops, and operates crude oil and refined petroleum products terminals, pipelines, storage facilities, and other logistics assets in the United States. It operates through Transportation and Terminaling, and Storage segments. The company's assets include Delaware City rail unloading terminal, a light crude oil rail unloading terminal, which serves Delaware City and Paulsboro refineries; Toledo truck unloading Terminal, that serves Toledo refinery; Delaware City west heavy unloading rack, a heavy crude oil unloading facility, which serves Delaware City refinery; and a terminaling facility that consists of 27 propane storage bullets and a truck loading facility. Its storage facility consists of 30 tanks for storing crude oil, refined products, and intermediates. PBF Logistics GP LLC serves as the general partner of the partnership. The company was founded in 2012 and is based in Parsippany, New Jersey.
Magellan Midstream Partners Company Profile
Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. The company operates through Refined Products, Crude Oil, and Marine Storage segments. It operates refined products pipeline that transports gasoline, distillates, aviation fuels, and liquefied petroleum gases for independent refiners and integrated oil companies, wholesalers, retailers, traders, railroads, airlines, bio-fuel producers, and regional farm cooperatives; and provides services, including terminalling, ethanol and biodiesel unloading and loading, additive injection, custom blending, laboratory testing, and data services to shippers. The company also owns and operates crude oil pipelines and storage facilities; and marine terminals located along coastal waterways that provide distribution, storage, blending, inventory management, and additive injection services for refiners, marketers, traders, and other end users of petroleum products. As of December 31, 2017, it had 9,700-mile refined products pipeline system with 53 terminals, as well as 26 independent terminals; 1,100-mile ammonia pipeline system; approximately 2,200 miles of crude oil pipelines and storage facilities with an aggregate storage capacity of approximately 28 million barrels; and 5 marine terminals with an aggregate storage capacity of approximately 26 million barrels. The company serves as the general partner of Magellan GP, LLC. Magellan Midstream Partners, L.P. was founded in 2000 and is headquartered in Tulsa, Oklahoma.
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