Critical Survey: PBF Logistics (PBFX) & Noble Midstream Partners (NBLX)

PBF Logistics (NYSE: PBFX) and Noble Midstream Partners (NYSE:NBLX) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PBF Logistics and Noble 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
Noble Midstream Partners 0 1 6 0 2.86

PBF Logistics currently has a consensus target price of $24.00, suggesting a potential upside of 19.11%. Noble Midstream Partners has a consensus target price of $56.83, suggesting a potential upside of 4.96%. Given PBF Logistics’ higher possible upside, equities research analysts clearly believe PBF Logistics is more favorable than Noble Midstream Partners.

Dividends

PBF Logistics pays an annual dividend of $1.92 per share and has a dividend yield of 9.5%. Noble Midstream Partners pays an annual dividend of $1.95 per share and has a dividend yield of 3.6%. 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. Noble Midstream Partners pays out 52.7% of its earnings in the form of a dividend. PBF Logistics has raised its dividend for 3 consecutive years. PBF Logistics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

34.9% of PBF Logistics shares are owned by institutional investors. Comparatively, 76.1% of Noble Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares PBF Logistics and Noble 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 4.51 $75.94 million $2.24 9.00
Noble Midstream Partners $160.72 million 7.83 $74.44 million $3.70 14.64

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

Volatility & Risk

PBF Logistics has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Noble Midstream Partners has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares PBF Logistics and Noble 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%
Noble Midstream Partners 55.83% 36.74% 24.51%

Summary

Noble Midstream Partners beats PBF Logistics on 9 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 Noble Midstream Partners

Noble Midstream Partners LP is engaged in owning, operating, developing and acquiring a range of domestic midstream infrastructure assets. The Company’s areas of focus are in the area of Denver-Julesburg (DJ) Basin in Colorado and the Southern Delaware Basin position of the Permian Basin in Texas (Delaware Basin). Its segments include Gathering Systems, Fresh Water Delivery, and Investments in White Cliffs and Other. The Gathering Systems segment includes crude oil, natural gas and produced water gathering, as well as crude oil treating. It holds interest in White Cliffs Pipeline L.L.C. (the White Cliffs Interest). The Investments in White Cliffs and Other segment includes activity associated with the White Cliffs Interest. As of December 31, 2016, the White Cliffs Pipeline system consisted of two 527-mile crude oil pipelines that extended from the DJ Basin to the Cushing, Oklahoma. It provides crude oil, natural gas, and water-related midstream services for Noble Energy, Inc.

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