Phillips 66 (PSX) vs. The Competition Head to Head Analysis

Phillips 66 (NYSE:PSX) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its competitors? We will compare Phillips 66 to related companies based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, dividends, risk and profitability.

Risk & Volatility

Phillips 66 has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Phillips 66’s competitors have a beta of -3.72, indicating that their average stock price is 472% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Phillips 66 and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phillips 66	0	8	11	2	2.71
Phillips 66 Competitors	5969	26960	40805	2413	2.52

Phillips 66 currently has a consensus price target of $270.12, indicating a potential upside of 6.14%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 27.29%. Given Phillips 66’s competitors higher probable upside, analysts clearly believe Phillips 66 has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Phillips 66 and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Phillips 66	$136.56 billion	$4.40 billion	8.13
Phillips 66 Competitors	$14.79 billion	$5.51 billion	-0.28

Phillips 66 has higher revenue, but lower earnings than its competitors. Phillips 66 is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

76.9% of Phillips 66 shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 0.4% of Phillips 66 shares are held by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Phillips 66 pays an annual dividend of $5.08 per share and has a dividend yield of 2.0%. Phillips 66 pays out 16.2% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.0% and pay out -122.4% of their earnings in the form of a dividend. Phillips 66 has increased its dividend for 14 consecutive years. Phillips 66 lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Phillips 66 and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phillips 66	7.27%	33.12%	13.04%
Phillips 66 Competitors	-470.80%	19.34%	6.40%

Summary

Phillips 66 beats its competitors on 9 of the 15 factors compared.

About Phillips 66

Phillips 66 operates as an energy manufacturing and logistics company in the United States, the United Kingdom, Germany, and internationally. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas. The Chemicals segment produces and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; and various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining. The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasolines, distillates, aviation, and renewable. The M&S segment purchases for resale and markets refined petroleum products, including gasolines, distillates, and aviation fuels. This segment also manufactures and markets specialty products, such as base oils and lubricants. Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.