Delek Logistics Partners (NYSE:DKL) and Energy Transfer (NYSE:ET) Head to Head Contrast

Delek Logistics Partners (NYSE:DKL) and Energy Transfer (NYSE:ET) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Insider and Institutional Ownership

11.8% of Delek Logistics Partners shares are owned by institutional investors. Comparatively, 38.2% of Energy Transfer shares are owned by institutional investors. 1.0% of Delek Logistics Partners shares are owned by insiders. Comparatively, 3.3% of Energy Transfer shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Delek Logistics Partners	15.88%	-1,782.51%	7.43%
Energy Transfer	5.88%	11.47%	3.88%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Delek Logistics Partners	$940.64 million	2.48	$142.68 million	$2.99	14.63
Energy Transfer	$82.67 billion	0.74	$4.45 billion	$1.32	13.59

Energy Transfer has higher revenue and earnings than Delek Logistics Partners. Energy Transfer 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 breakdown of current ratings and target prices for Delek Logistics Partners and Energy Transfer, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Delek Logistics Partners	1	1	3	0	2.40
Energy Transfer	0	1	10	0	2.91

Delek Logistics Partners currently has a consensus target price of $44.25, indicating a potential upside of 1.17%. Energy Transfer has a consensus target price of $22.64, indicating a potential upside of 26.18%. Given Energy Transfer’s stronger consensus rating and higher probable upside, analysts clearly believe Energy Transfer is more favorable than Delek Logistics Partners.

Risk & Volatility

Delek Logistics Partners has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Energy Transfer has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Dividends

Delek Logistics Partners pays an annual dividend of $4.44 per share and has a dividend yield of 10.2%. Energy Transfer pays an annual dividend of $1.31 per share and has a dividend yield of 7.3%. Delek Logistics Partners pays out 148.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energy Transfer pays out 99.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Delek Logistics Partners has increased its dividend for 1 consecutive years and Energy Transfer has increased its dividend for 4 consecutive years.

Summary

Energy Transfer beats Delek Logistics Partners on 11 of the 17 factors compared between the two stocks.

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.

About Energy Transfer

Energy Transfer LP provides energy-related services. The company owns and operates natural gas transportation pipeline, and natural gas storage facilities in Texas and Oklahoma; and approximately 20,090 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. In addition, the company owns and operates natural gas gathering pipelines, processing plant, and treating and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Arkansas, Kansas, Montana, North Dakota, Wyoming, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; and transports and supplies water to natural gas producer in Pennsylvania. Further, it owns 5,700 miles of natural gas liquid (NGL) pipeline; NGL fractionation facilities; NGL storage facilities; and other NGL storage assets and terminal. Additionally, the company provides crude oil transportation, terminalling, acquisition, and marketing activities; owns and operates approximately 14,500 miles of crude oil trunk and gathering pipelines in the Southwest, Midcontinent, and Midwest United States; and sells and distributes gasoline, middle distillate, and motor fuels and other petroleum products. It also offers natural gas compression services; carbon dioxide and hydrogen sulfide removal services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalty, and generate electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. Energy Transfer LP was founded in 1996 and is headquartered in Dallas, Texas.