Head-To-Head Comparison: Delek Logistics Partners, L.P. (DKL) vs. Teekay Tankers (TNK)
Delek Logistics Partners, L.P. (NYSE: DKL) and Teekay Tankers (NYSE:TNK) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Earnings and Valuation
This table compares Delek Logistics Partners, L.P. and Teekay Tankers’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Delek Logistics Partners, L.P.||$488.39 million||1.58||$100.26 million||$1.90||16.68|
|Teekay Tankers||$447.92 million||0.54||$107.40 million||($0.19)||-7.42|
Teekay Tankers has higher revenue, but lower earnings than Delek Logistics Partners, L.P.. Teekay Tankers is trading at a lower price-to-earnings ratio than Delek Logistics Partners, L.P., indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for Delek Logistics Partners, L.P. and Teekay Tankers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delek Logistics Partners, L.P.||0||2||1||0||2.33|
Delek Logistics Partners, L.P. presently has a consensus target price of $33.50, suggesting a potential upside of 5.68%. Teekay Tankers has a consensus target price of $2.40, suggesting a potential upside of 70.21%. Given Teekay Tankers’ higher possible upside, analysts clearly believe Teekay Tankers is more favorable than Delek Logistics Partners, L.P..
Insider and Institutional Ownership
28.8% of Delek Logistics Partners, L.P. shares are owned by institutional investors. Comparatively, 39.0% of Teekay Tankers shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Delek Logistics Partners, L.P. has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of 2.27, indicating that its share price is 127% more volatile than the S&P 500.
This table compares Delek Logistics Partners, L.P. and Teekay Tankers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delek Logistics Partners, L.P.||12.70%||-368.38%||15.15%|
Delek Logistics Partners, L.P. pays an annual dividend of $2.82 per share and has a dividend yield of 8.9%. Teekay Tankers pays an annual dividend of $0.12 per share and has a dividend yield of 8.5%. Delek Logistics Partners, L.P. pays out 148.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teekay Tankers pays out -63.2% of its earnings in the form of a dividend. Teekay Tankers has raised its dividend for 3 consecutive years.
Delek Logistics Partners, L.P. beats Teekay Tankers on 8 of the 15 factors compared between the two stocks.
About Delek Logistics Partners, L.P.
Delek Logistics Partners, LP owns and operates logistics and marketing assets for crude oil, and intermediate and refined products. The Company’s business primarily consists of certain crude oil, intermediate and refined products pipelines and transportation, storage, wholesale marketing, terminaling and offloading assets, which were previously owned, operated or held by Delek US Holdings, Inc. (Delek), and assets acquired from unrelated third parties. The Company operates through two segments: Pipelines and Transportation segment, and Wholesale Marketing and Terminalling segment. The Company engaged in the gathering, transporting and storing crude oil; storing intermediate products and feed stocks, and marketing, distributing, transporting, offloading and storing refined products. The Company also provides crude oil, intermediate and refined products transportation services for terminaling, and marketing services to third parties primarily in Texas, Tennessee and Arkansas.
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.
Receive News & Stock Ratings for Delek Logistics Partners L.P. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Delek Logistics Partners L.P. and related stocks with our FREE daily email newsletter.