Critical Analysis: Phillips 66 (PSX) versus Its Rivals

Phillips 66 (NYSE: PSX) is one of 43 public companies in the “Oil & Gas Refining and Marketing” industry, but how does it compare to its peers? We will compare Phillips 66 to related businesses based on the strength of its dividends, risk, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Dividends

Phillips 66 pays an annual dividend of $2.80 per share and has a dividend yield of 3.0%. Phillips 66 pays out 70.2% of its earnings in the form of a dividend. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.0% and pay out 411.3% of their earnings in the form of a dividend. Phillips 66 has increased its dividend for 5 consecutive years.

Institutional and Insider Ownership

69.6% of Phillips 66 shares are owned by institutional investors. Comparatively, 47.3% of shares of all “Oil & Gas Refining and Marketing” companies are owned by institutional investors. 0.5% of Phillips 66 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 stock is poised for long-term growth.

Volatility and Risk

Phillips 66 has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Phillips 66’s peers have a beta of 1.33, indicating that their average stock price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Phillips 66 and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phillips 66 1 6 8 0 2.47
Phillips 66 Competitors 373 1798 2204 111 2.46

Phillips 66 currently has a consensus target price of $92.22, indicating a potential downside of 1.45%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 7.07%. Given Phillips 66’s peers higher possible upside, analysts clearly believe Phillips 66 has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Phillips 66 2.11% 7.58% 3.48%
Phillips 66 Competitors -1.54% 2.04% 1.35%

Valuation & Earnings

This table compares Phillips 66 and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Phillips 66 $85.78 billion $1.56 billion 23.45
Phillips 66 Competitors $40.28 billion $687.43 million 122.38

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

Summary

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

Phillips 66 Company Profile

Phillips 66 is an energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses. The Company operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment gathers, processes, transports and markets natural gas, and transports, stores, fractionates and markets natural gas liquids (NGLs) in the United States. The Chemicals segment consists of its equity investment in Chevron Phillips Chemical Company LLC (CPChem), which manufactures and markets petrochemicals and plastics. The Refining segment buys, sells and refines crude oil and other feedstocks at refineries in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products, such as gasolines, distillates and aviation fuels, primarily in the United States and Europe, as well as includes the manufacturing and marketing of specialty products, and power generation operations.

What are top analysts saying about Phillips 66? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Phillips 66 and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit