Financial Comparison: Andeavor Logistics (ANDX) versus Phillips 66 Partners (PSXP)

Andeavor Logistics (NYSE: ANDX) and Phillips 66 Partners (NYSE:PSXP) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

38.5% of Andeavor Logistics shares are held by institutional investors. Comparatively, 38.5% of Phillips 66 Partners shares are held by institutional investors. 0.2% of Andeavor Logistics shares are held by insiders. 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.

Dividends

Andeavor Logistics pays an annual dividend of $4.06 per share and has a dividend yield of 9.4%. Phillips 66 Partners pays an annual dividend of $2.86 per share and has a dividend yield of 5.6%. Andeavor Logistics pays out 161.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips 66 Partners pays out 110.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips 66 Partners has increased its dividend for 4 consecutive years.

Profitability

This table compares Andeavor Logistics and Phillips 66 Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Andeavor Logistics 15.88% 19.18% 6.38%
Phillips 66 Partners 46.01% 33.24% 11.22%

Valuation & Earnings

This table compares Andeavor Logistics and Phillips 66 Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Andeavor Logistics $3.21 billion 2.91 $373.00 million $2.51 17.16
Phillips 66 Partners $1.17 billion 5.34 $461.00 million $2.59 19.79

Phillips 66 Partners has lower revenue, but higher earnings than Andeavor Logistics. Andeavor Logistics is trading at a lower price-to-earnings ratio than Phillips 66 Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Andeavor Logistics and Phillips 66 Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Andeavor Logistics 0 10 7 0 2.41
Phillips 66 Partners 0 5 8 0 2.62

Andeavor Logistics currently has a consensus target price of $52.25, indicating a potential upside of 21.29%. Phillips 66 Partners has a consensus target price of $56.88, indicating a potential upside of 10.95%. Given Andeavor Logistics’ higher probable upside, analysts plainly believe Andeavor Logistics is more favorable than Phillips 66 Partners.

Risk and Volatility

Andeavor Logistics has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Phillips 66 Partners has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Summary

Phillips 66 Partners beats Andeavor Logistics on 13 of the 17 factors compared between the two stocks.

Andeavor Logistics Company Profile

Andeavor Logistics LP operates as a diversified midstream company in the United States. The Terminalling and Transportation segment comprises the Northwest Products Pipeline, including a regulated common carrier products pipeline running from Salt Lake City, Utah to Spokane, Washington and a jet fuel pipeline to the Salt Lake City International Airport; a regulated common carrier refined products pipeline system connecting its refinery to its terminals in Anchorage, Alaska; tankage and related equipment at the refinery; and crude oil and refined products terminals and storage facilities in the western, and southwest and midwestern U.S. This segment also consists of marine terminals in California and Washington; a rail-car unloading and petroleum coke handling facilities; marine terminals; a manifest rail facility; an asphalt trucking operation; a petroleum coke handling and storage facility; asphalt terminalling and processing services; and other pipelines, which transport products and crude oil from its refineries to nearby facilities in Salt Lake City and Los Angeles. The Gathering and Processing segment includes crude oil and natural gas pipeline gathering systems in the Bakken Shale/Williston Basin area of North Dakota and Montana; the Green River Basin, Uinta Basin, and Vermillion Basin in the states of Utah, Colorado, and Wyoming; the Delaware Basin in the Permian Basin area of West Texas and Southern New Mexico; and the Four Corners area of Northwestern New Mexico, as well as crude trucking operations, and gas processing and fractionation complexes. The Wholesale segment consists of bulk petroleum distribution facilities and a fleet of refined product delivery trucks. Tesoro Logistics GP, LLC operates as the general partner of the company. The company was formerly known as Tesoro Logistics LP and changed its name to Andeavor Logistics LP in August 2017. Andeavor Logistics LP was founded in 2010 and is headquartered in San Antonio, Texas.

Phillips 66 Partners Company Profile

Phillips 66 Partners LP owns, operates, develops, and acquires crude oil, refined petroleum products, and natural gas liquids pipelines, terminals, and other transportation and midstream assets. The company operates pipeline assets in Lake Charles, Sweeny, Wood River, Borger/Ponca City, Billings, and Borger; terminal, rail rack, and storage assets in Louisiana, Texas, Illinois, Missouri, Kansas, Oklahoma, New Jersey, Washington, Wyoming, and Montana; marine assets in Lake Charles and Wood River; and natural gas liquids assets in Texas and Louisiana. Phillips 66 Partners GP LLC operates as the general partner of Phillips 66 Partners LP. The company was founded in 2013 and is headquartered in Houston, Texas. Phillips 66 Partners LP is a subsidiary of Phillips 66 Project Development Inc.

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