Nordic American Tankers (NYSE:NAT – Get Free Report) and PBF Energy (NYSE:PBF – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Dividends
Nordic American Tankers pays an annual dividend of $1.08 per share and has a dividend yield of 12.3%. PBF Energy pays an annual dividend of $1.10 per share and has a dividend yield of 1.3%. Nordic American Tankers pays out 183.1% 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 Energy pays out 9.7% of its earnings in the form of a dividend. Nordic American Tankers has raised its dividend for 1 consecutive years and PBF Energy has raised its dividend for 2 consecutive years.
Earnings and Valuation
This table compares Nordic American Tankers and PBF Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nordic American Tankers | $370.40 million | 5.02 | $12.27 million | $0.59 | 14.89 |
| PBF Energy | $29.33 billion | 0.34 | -$158.50 million | $11.30 | 7.53 |
Nordic American Tankers has higher earnings, but lower revenue than PBF Energy. PBF Energy is trading at a lower price-to-earnings ratio than Nordic American Tankers, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nordic American Tankers and PBF Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nordic American Tankers | 47.04% | 20.58% | 10.38% |
| PBF Energy | 3.94% | 11.27% | 4.67% |
Institutional & Insider Ownership
44.3% of Nordic American Tankers shares are owned by institutional investors. Comparatively, 96.3% of PBF Energy shares are owned by institutional investors. 2.9% of Nordic American Tankers shares are owned by company insiders. Comparatively, 5.5% of PBF Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Nordic American Tankers has a beta of -0.56, meaning that its share price is 156% less volatile than the S&P 500. Comparatively, PBF Energy has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Nordic American Tankers and PBF Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nordic American Tankers | 1 | 2 | 1 | 0 | 2.00 |
| PBF Energy | 3 | 8 | 3 | 1 | 2.13 |
Nordic American Tankers presently has a consensus price target of $6.00, indicating a potential downside of 31.70%. PBF Energy has a consensus price target of $65.55, indicating a potential downside of 22.92%. Given PBF Energy’s stronger consensus rating and higher possible upside, analysts clearly believe PBF Energy is more favorable than Nordic American Tankers.
Summary
PBF Energy beats Nordic American Tankers on 11 of the 18 factors compared between the two stocks.
About Nordic American Tankers
Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 20 Suezmax crude oil tankers. The company was incorporated in 1995 and is headquartered in Hamilton, Bermuda.
About PBF Energy
PBF Energy Inc., through its subsidiaries, engages in refining and supplying petroleum products. The company operates in two segments, Refining and Logistics. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, petrochemical feedstocks, blending components, and other petroleum products from crude oil. The company sells its products in Northeast, Midwest, Gulf Coast, and West Coast of the United States, as well as in other regions of the United States, Canada, Mexico, and internationally. It is also involved in the provision of various rail, truck, and marine terminaling services, as well as pipeline transportation and storage services. The company was founded in 2008 and is based in Parsippany, New Jersey.
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