Par Pacific (NYSE:PARR – Get Free Report) and PBF Energy (NYSE:PBF – Get Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Institutional & Insider Ownership
92.2% of Par Pacific shares are held by institutional investors. Comparatively, 96.3% of PBF Energy shares are held by institutional investors. 4.4% of Par Pacific shares are held by company insiders. Comparatively, 5.3% of PBF Energy shares are held by company insiders. 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.
Valuation & Earnings
This table compares Par Pacific and PBF Energy”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Par Pacific | $7.97 billion | 0.24 | -$33.32 million | ($0.28) | -133.41 |
PBF Energy | $33.12 billion | 0.11 | -$533.80 million | ($8.59) | -3.75 |
Par Pacific has higher earnings, but lower revenue than PBF Energy. Par Pacific is trading at a lower price-to-earnings ratio than PBF Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Par Pacific and PBF Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Par Pacific | -0.25% | -1.79% | -0.55% |
PBF Energy | -3.24% | -17.46% | -7.46% |
Analyst Recommendations
This is a breakdown of current ratings for Par Pacific and PBF Energy, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Par Pacific | 0 | 4 | 5 | 0 | 2.56 |
PBF Energy | 6 | 7 | 1 | 0 | 1.64 |
Par Pacific currently has a consensus target price of $33.86, indicating a potential downside of 9.36%. PBF Energy has a consensus target price of $26.38, indicating a potential downside of 18.03%. Given Par Pacific’s stronger consensus rating and higher possible upside, equities analysts clearly believe Par Pacific is more favorable than PBF Energy.
Volatility and Risk
Par Pacific has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, PBF Energy has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Summary
Par Pacific beats PBF Energy on 10 of the 14 factors compared between the two stocks.
About Par Pacific
Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.
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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