Financial Comparison: Phillips 66 (PSX) and Suburban Propane Partners, L.P. (SPH)
Phillips 66 (NYSE: PSX) and Suburban Propane Partners, L.P. (NYSE:SPH) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Earnings and Valuation
This table compares Phillips 66 and Suburban Propane Partners, L.P.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Phillips 66||$79.20 billion||0.54||$2.21 billion||$3.35||24.91|
|Suburban Propane Partners, L.P.||$1.15 billion||1.28||$229.21 million||$0.45||53.51|
Phillips 66 has higher revenue and earnings than Suburban Propane Partners, L.P.. Phillips 66 is trading at a lower price-to-earnings ratio than Suburban Propane Partners, L.P., indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Phillips 66 has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Suburban Propane Partners, L.P. has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.
This is a breakdown of recent ratings for Phillips 66 and Suburban Propane Partners, L.P., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Suburban Propane Partners, L.P.||1||1||1||0||2.00|
Phillips 66 presently has a consensus target price of $82.33, indicating a potential downside of 1.33%. Suburban Propane Partners, L.P. has a consensus target price of $27.33, indicating a potential upside of 13.51%. Given Suburban Propane Partners, L.P.’s higher probable upside, analysts clearly believe Suburban Propane Partners, L.P. is more favorable than Phillips 66.
Phillips 66 pays an annual dividend of $2.80 per share and has a dividend yield of 3.4%. Suburban Propane Partners, L.P. pays an annual dividend of $3.55 per share and has a dividend yield of 14.7%. Phillips 66 pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suburban Propane Partners, L.P. pays out 788.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips 66 has increased its dividend for 5 consecutive years and Suburban Propane Partners, L.P. has increased its dividend for 2 consecutive years.
Insider and Institutional Ownership
69.6% of Phillips 66 shares are owned by institutional investors. Comparatively, 28.1% of Suburban Propane Partners, L.P. shares are owned by institutional investors. 0.5% of Phillips 66 shares are owned by company insiders. Comparatively, 0.6% of Suburban Propane Partners, L.P. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Phillips 66 and Suburban Propane Partners, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Suburban Propane Partners, L.P.||2.46%||4.09%||1.25%|
Phillips 66 beats Suburban Propane Partners, L.P. on 11 of the 17 factors compared between the two stocks.
About Phillips 66
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.
About Suburban Propane Partners, L.P.
Suburban Propane Partners, L.P. is a marketer and distributor of a range of products. The Company specializes in the distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets. The Company’s segments include Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. In support of its marketing and distribution operations, the Company installs and services a range of home comfort equipment, particularly in the areas of heating and ventilation. The Company conducts its business through Suburban Propane, L.P., which operates its propane business and assets (the Operating Partnership), and its direct and indirect subsidiaries. As of September 24, 2016, it had sold approximately 414.8 million gallons of propane and 30.9 million gallons of fuel oil and refined fuels to retail customers. The Company owns and operates a propane storage facility in Elk Grove, California.
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