Sasol (NYSE: SSL) and PBF Energy (NYSE:PBF) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Risk and Volatility
Sasol has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, PBF Energy has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
Sasol pays an annual dividend of $0.74 per share and has a dividend yield of 2.6%. PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 4.4%. PBF Energy pays out -363.6% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Sasol and PBF Energy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sasol||$13.33 billion||1.40||$3.92 billion||N/A||N/A|
|PBF Energy||$19.03 billion||0.16||$189.02 million||($0.33)||-83.52|
Sasol has higher revenue, but lower earnings than PBF Energy.
Insider and Institutional Ownership
1.9% of Sasol shares are owned by institutional investors. 1.0% of Sasol shares are owned by insiders. Comparatively, 2.6% of PBF Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Sasol and PBF Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PBF Energy has a consensus target price of $25.11, indicating a potential downside of 8.89%. Given PBF Energy’s higher possible upside, analysts clearly believe PBF Energy is more favorable than Sasol.
This table compares Sasol and PBF Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Sasol Company Profile
Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.
PBF Energy Company Profile
PBF Energy Inc. (PBF Energy) is a holding company. The Company is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company operates through two segments: Refining and Logistics. It sells its products throughout the Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other regions of the United States and Canada, and ships products to other international destinations. As of December 31, 2016, it owned and operated five domestic oil refineries and related assets. As of December 31, 2016, its refineries had a combined processing capacity, known as throughput, of approximately 900,000 barrels per day (bpd) and a weighted-average Nelson Complexity Index of approximately 12.2. As of December 31, 2016, the Company owned and operated five refineries providing geographic and market diversity.
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