Financial Survey: Columbia Pipeline Group (CPGX) versus PBF Logistics (PBFX)

Columbia Pipeline Group (NYSE: CPGX) and PBF Logistics (NYSE:PBFX) are both oil & gas transportation services – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Columbia Pipeline Group and PBF Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Columbia Pipeline Group 23.76% 7.15% 3.45%
PBF Logistics 49.89% N/A 17.41%

Institutional & Insider Ownership

37.4% of PBF Logistics shares are held by institutional investors. 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Columbia Pipeline Group and PBF Logistics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Pipeline Group 0 0 0 0 N/A
PBF Logistics 0 1 0 0 2.00

PBF Logistics has a consensus price target of $24.00, suggesting a potential upside of 15.94%. Given PBF Logistics’ higher probable upside, analysts clearly believe PBF Logistics is more favorable than Columbia Pipeline Group.

Earnings & Valuation

This table compares Columbia Pipeline Group and PBF Logistics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Columbia Pipeline Group N/A N/A N/A $0.72 35.40
PBF Logistics $187.34 million 4.63 $75.94 million $2.24 9.24

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

Dividends

Columbia Pipeline Group pays an annual dividend of $0.54 per share and has a dividend yield of 2.1%. PBF Logistics pays an annual dividend of $1.92 per share and has a dividend yield of 9.3%. Columbia Pipeline Group pays out 75.0% 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 Logistics pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Columbia Pipeline Group has increased its dividend for 2 consecutive years.

Summary

PBF Logistics beats Columbia Pipeline Group on 7 of the 11 factors compared between the two stocks.

About Columbia Pipeline Group

Columbia Pipeline Group, Inc. owns, operates and develops a portfolio of pipelines, storage and related midstream assets. The Company is engaged in regulated gas transportation and storage services for local distribution companies (LDCs), marketers, producers, and industrial and commercial customers located in northeastern, mid-Atlantic, Midwestern and southern states and the District of Columbia, along with unregulated businesses that include midstream services, including gathering, treating, conditioning, processing, compression and liquids handling, and development of mineral rights positions. Its segment consists of portfolio of pipelines, storage and related midstream assets. It owns approximately 15,000 miles of strategically located interstate gas pipelines extending from New York to the Gulf of Mexico and an underground natural gas storage system with approximately 300 million dekatherms (MMDth) of working gas capacity, as well as related gathering and processing assets.

About PBF Logistics

PBF Logistics LP owns or leases, operates, develops and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. The Company operates through two segments: Transportation and Terminaling, and Storage. The Transportation and Terminaling segment consists of various assets, including Delaware City Rail Unloading Terminal (DCR Rail Terminal), Toledo Truck Unloading Terminal (Toledo Truck Terminal), Delaware City West Heavy Unloading Rack (the DCR West Rack), East Coast Terminals and Torrance Valley Pipeline. The Storage Segment includes the Toledo Storage Facility, excluding the propane truck loading facility. The storage facility at its Toledo Storage Facility consisted of 30 tanks for storing crude oil, refined products and intermediates, as of December 31, 2016. PBF Logistics GP LLC (PBF GP) is its general partner. PBF GP is owned by PBF Energy Company LLC (PBF LLC).

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