Delek Logistics Partners (NYSE:DKL) vs. NextDecade (NASDAQ:NEXT) Head to Head Review

NextDecade (NASDAQ:NEXT) and Delek Logistics Partners (NYSE:DKL) are both mid-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Institutional & Insider Ownership

66.7% of NextDecade shares are owned by institutional investors. Comparatively, 11.8% of Delek Logistics Partners shares are owned by institutional investors. 1.8% of NextDecade shares are owned by company insiders. Comparatively, 1.0% of Delek Logistics Partners shares are owned by company insiders. 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.

Earnings & Valuation

This table compares NextDecade and Delek Logistics Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextDecade	N/A	N/A	-$61.75 million	($0.78)	-13.13
Delek Logistics Partners	$940.64 million	2.47	$142.68 million	$2.95	14.71

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

Analyst Ratings

This is a summary of recent ratings and price targets for NextDecade and Delek Logistics Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextDecade	0	0	3	1	3.25
Delek Logistics Partners	1	1	3	0	2.40

NextDecade currently has a consensus target price of $13.00, suggesting a potential upside of 26.95%. Delek Logistics Partners has a consensus target price of $44.25, suggesting a potential upside of 1.97%. Given NextDecade’s stronger consensus rating and higher possible upside, equities analysts clearly believe NextDecade is more favorable than Delek Logistics Partners.

Profitability

This table compares NextDecade and Delek Logistics Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextDecade	N/A	-26.59%	-6.45%
Delek Logistics Partners	16.58%	1,224.47%	6.67%

Volatility & Risk

NextDecade has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Delek Logistics Partners has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Summary

Delek Logistics Partners beats NextDecade on 7 of the 13 factors compared between the two stocks.

About NextDecade

NextDecade Corp. is a development company.

About Delek Logistics Partners

Delek Logistics Partners, LP provides gathering, pipeline, transportation, and other services for crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling water disposal and recycling customers in the United States. The Gathering and Processing segment consists of pipelines, tanks, and offloading facilities that provide crude oil and natural gas gathering and processing, water disposal and recycling, and storage services, as well as crude oil transportation services to third parties. The Wholesale Marketing and Terminalling segment includes refined products terminals and pipelines in Texas, Tennessee, and Arkansas. This segment provides marketing services for the refined products and terminalling services at refined products terminals to independent third parties. The Storage and Transportation segment comprises tanks, offloading facilities, trucks, and ancillary assets, which provide crude oil, intermediate, and refined products transportation and storage services. Delek Logistics GP, LLC serves as the general partner of the company. Delek Logistics Partners, LP was incorporated in 2012 and is headquartered in Brentwood, Tennessee. Delek Logistics Partners, LP operates as a subsidiary of Delek US Holdings, Inc.