Analyzing Delek Logistics Partners (NYSE:DKL) & Enterprise Products Partners (NYSE:EPD)

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

Insider and Institutional Ownership

11.8% of Delek Logistics Partners shares are held by institutional investors. Comparatively, 26.1% of Enterprise Products Partners shares are held by institutional investors. 1.0% of Delek Logistics Partners shares are held by company insiders. Comparatively, 32.6% of Enterprise Products Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Delek Logistics Partners and Enterprise Products Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Delek Logistics Partners	$940.64 million	2.49	$142.68 million	$2.99	14.68
Enterprise Products Partners	$56.22 billion	1.21	$5.90 billion	$2.67	11.74

Enterprise Products Partners has higher revenue and earnings than Delek Logistics Partners. Enterprise Products Partners 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.

Volatility and Risk

Delek Logistics Partners has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Enterprise Products Partners has a beta of 0.64, suggesting that its share price is 36% 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 10.1%. Enterprise Products Partners pays an annual dividend of $2.14 per share and has a dividend yield of 6.8%. 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. Enterprise Products Partners pays out 80.1% 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 raised its dividend for 1 consecutive years and Enterprise Products Partners has raised its dividend for 28 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Delek Logistics Partners and Enterprise Products Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Delek Logistics Partners	1	1	3	0	2.40
Enterprise Products Partners	0	5	6	2	2.77

Delek Logistics Partners currently has a consensus price target of $44.25, indicating a potential upside of 0.80%. Enterprise Products Partners has a consensus price target of $36.20, indicating a potential upside of 15.51%. Given Enterprise Products Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Enterprise Products Partners is more favorable than Delek Logistics Partners.

Profitability

This table compares Delek Logistics Partners and Enterprise Products Partners’ 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%
Enterprise Products Partners	10.26%	19.90%	7.75%

Summary

Enterprise Products Partners beats Delek Logistics Partners on 12 of the 18 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 Enterprise Products Partners

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services. It operates natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, which include a fleet of approximately 250 tractor-trailer tank trucks that are used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates natural gas pipeline systems to gather, treat, and transport natural gas. It leases underground salt dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation facilities, including propylene fractionation units and propane dehydrogenation facilities, and related marketing activities; butane isomerization complex and related deisobutanizer operations; and octane enhancement, isobutane dehydrogenation, and high purity isobutylene production facilities. It also operates refined products pipelines and terminals; and ethylene export terminals; and provides refined products marketing and marine transportation services. Enterprise Products Partners L.P. was founded in 1968 and is headquartered in Houston, Texas.