PBF Logistics (PBFX) versus EQT Midstream Partners (EQM) Critical Comparison

PBF Logistics (NYSE: PBFX) and EQT Midstream Partners (NYSE:EQM) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Dividends

PBF Logistics pays an annual dividend of $1.92 per share and has a dividend yield of 9.6%. EQT Midstream Partners pays an annual dividend of $4.10 per share and has a dividend yield of 5.7%. PBF Logistics pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EQT Midstream Partners pays out 78.4% 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 EQT Midstream Partners has increased its dividend for 5 consecutive years.

Profitability

This table compares PBF Logistics and EQT Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PBF Logistics 38.76% 64.05% 12.90%
EQT Midstream Partners 65.99% 25.85% 16.59%

Analyst Ratings

This is a summary of recent ratings and recommmendations for PBF Logistics and EQT Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Logistics 0 1 0 0 2.00
EQT Midstream Partners 0 2 7 0 2.78

PBF Logistics currently has a consensus target price of $24.00, indicating a potential upside of 20.00%. EQT Midstream Partners has a consensus target price of $88.43, indicating a potential upside of 22.12%. Given EQT Midstream Partners’ stronger consensus rating and higher probable upside, analysts clearly believe EQT Midstream Partners is more favorable than PBF Logistics.

Institutional & Insider Ownership

37.5% of PBF Logistics shares are owned by institutional investors. Comparatively, 73.8% of EQT Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

PBF Logistics has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, EQT Midstream Partners has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Earnings and Valuation

This table compares PBF Logistics and EQT Midstream Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PBF Logistics $187.34 million 4.47 $75.94 million $2.24 8.93
EQT Midstream Partners $735.61 million 7.93 $537.95 million $5.23 13.85

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

Summary

EQT Midstream Partners beats PBF Logistics on 13 of the 16 factors compared between the two stocks.

About PBF Logistics

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).

About EQT Midstream Partners

EQT Midstream Partners, LP (EQM) owns, operates, acquires and develops midstream assets in the Appalachian Basin. The Company’s segments include Gathering and Transmission. The Gathering segment primarily includes high pressure gathering lines and the Federal Energy Regulatory Commission (FERC)-regulated low pressure gathering system. Transmission includes EQM’s FERC-regulated interstate pipeline and storage business. The Company’s operations are primarily focused in southwestern Pennsylvania and northern West Virginia. As of December 31, 2016, the Company provided midstream services to EQT Corporation (EQT) and a range of third parties across 24 counties in Pennsylvania, West Virginia and Ohio through its two assets: the gathering system, which delivered natural gas from wells and other receipt points to transmission pipelines, and the transmission and storage system, which served as a header system transmission pipeline.

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