Head-To-Head Review: HF Sinclair (NYSE:DINO) & Phillips 66 (NYSE:PSX)

HF Sinclair (NYSE:DINOGet Rating) and Phillips 66 (NYSE:PSXGet Rating) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

HF Sinclair has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Phillips 66 has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Insider and Institutional Ownership

88.2% of HF Sinclair shares are owned by institutional investors. Comparatively, 64.3% of Phillips 66 shares are owned by institutional investors. 0.4% of HF Sinclair shares are owned by company insiders. Comparatively, 0.7% of Phillips 66 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares HF Sinclair and Phillips 66’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HF Sinclair 2.55% 7.42% 3.64%
Phillips 66 1.97% 17.07% 6.31%

Valuation and Earnings

This table compares HF Sinclair and Phillips 66’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HF Sinclair $18.39 billion 0.42 $558.32 million $3.40 13.78
Phillips 66 $114.85 billion 0.40 $1.32 billion $5.74 16.48

Phillips 66 has higher revenue and earnings than HF Sinclair. HF Sinclair is trading at a lower price-to-earnings ratio than Phillips 66, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for HF Sinclair and Phillips 66, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HF Sinclair 0 2 5 0 2.71
Phillips 66 0 3 8 1 2.83

HF Sinclair currently has a consensus price target of $48.80, suggesting a potential upside of 4.14%. Phillips 66 has a consensus price target of $99.09, suggesting a potential upside of 4.75%. Given Phillips 66’s stronger consensus rating and higher probable upside, analysts plainly believe Phillips 66 is more favorable than HF Sinclair.

Summary

Phillips 66 beats HF Sinclair on 11 of the 15 factors compared between the two stocks.

HF Sinclair Company Profile (Get Rating)

HF Sinclair Corporation operates as an independent energy company. It produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, specialty and modified asphalt, and others. The company also owns and operates refineries located in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming; and markets its refined products principally in the Southwest United States and Rocky Mountains, Pacific Northwest, and in other neighboring Plains states. In addition, it supplies fuels to approximately 1,300 independent Sinclair-branded stations and licenses the use of the Sinclair brand at approximately 300 additional locations, as well as engages in the growing renewables business. Further, the company produces base oils and other specialized lubricants; and provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum industry. HF Sinclair Corporation was incorporated in 2021 and is headquartered in Dallas, Texas.

Phillips 66 Company Profile (Get Rating)

Phillips 66 operates as an energy manufacturing and logistics company. 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 fuels at 12 refineries in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products, including gasolines, distillates, and aviation fuels primarily in the United States and Europe. This segment also manufactures and markets specialty products, such as base oils and lubricants. The company was founded in 1875 and is headquartered in Houston, Texas.

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