Analyzing Marathon Petroleum Corporation (MPC) and The Competition
Marathon Petroleum Corporation (NYSE: MPC) is one of 38 public companies in the “Oil & Gas Refining and Marketing” industry, but how does it contrast to its peers? We will compare Marathon Petroleum Corporation to similar companies based on the strength of its earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
This table compares Marathon Petroleum Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marathon Petroleum Corporation||1.34%||5.52%||2.45%|
|Marathon Petroleum Corporation Competitors||-1.52%||2.05%||1.32%|
Valuation and Earnings
This table compares Marathon Petroleum Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Marathon Petroleum Corporation||$60.96 billion||$4.41 billion||31.83|
|Marathon Petroleum Corporation Competitors||$45.68 billion||$4.44 billion||22.99|
Marathon Petroleum Corporation has higher revenue, but lower earnings than its peers. Marathon Petroleum Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
Marathon Petroleum Corporation has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Marathon Petroleum Corporation’s peers have a beta of 1.30, indicating that their average share price is 30% more volatile than the S&P 500.
Marathon Petroleum Corporation pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Marathon Petroleum Corporation pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.1% and pay out 864.8% of their earnings in the form of a dividend. Marathon Petroleum Corporation has raised its dividend for 6 consecutive years.
Insider and Institutional Ownership
78.3% of Marathon Petroleum Corporation shares are owned by institutional investors. Comparatively, 47.2% of shares of all “Oil & Gas Refining and Marketing” companies are owned by institutional investors. 1.1% of Marathon Petroleum Corporation shares are owned by insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are owned by 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.
This is a breakdown of recent ratings and price targets for Marathon Petroleum Corporation and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marathon Petroleum Corporation||0||5||10||1||2.75|
|Marathon Petroleum Corporation Competitors||358||1699||2109||108||2.46|
Marathon Petroleum Corporation presently has a consensus target price of $60.07, suggesting a potential upside of 7.23%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 10.02%. Given Marathon Petroleum Corporation’s peers higher possible upside, analysts plainly believe Marathon Petroleum Corporation has less favorable growth aspects than its peers.
Marathon Petroleum Corporation beats its peers on 11 of the 15 factors compared.
Marathon Petroleum Corporation Company Profile
Marathon Petroleum Corporation is engaged in refining, marketing, retail and transportation businesses in the United States and the largest east of the Mississippi. The Company operates through three segments: Refining & Marketing; Speedway; and Midstream. The Refining & Marketing segment refines crude oil and other feedstocks at the Company’s seven refineries in the Gulf Coast and Midwest regions of the United States. Its Speedway segment sells transportation fuels and convenience products in the retail market in the Midwest, East Coast and Southeast regions of the United States. The Company’s Midstream is engaged in the operations of MPLX LP and certain other related operations. It gathers, processes and transports natural gas, natural gas liquids (NGLs), crude oil and refined products. MPLX is a limited partnership which owns, operates, develops and acquires midstream energy infrastructure assets.
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