Phillips 66 (NYSE: PSX) is one of 38 public companies in the “Oil & Gas Refining and Marketing” industry, but how does it contrast to its competitors? We will compare Phillips 66 to related companies based on the strength of its analyst recommendations, institutional ownership, risk, profitability, earnings, dividends and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Phillips 66 and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phillips 66 1 6 8 0 2.47
Phillips 66 Competitors 369 1741 2158 110 2.46

Phillips 66 currently has a consensus price target of $92.22, suggesting a potential upside of 0.25%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 10.77%. Given Phillips 66’s competitors higher possible upside, analysts plainly believe Phillips 66 has less favorable growth aspects than its competitors.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Phillips 66 $79.20 billion $2.21 billion 23.06
Phillips 66 Competitors $45.68 billion $4.44 billion 21.63

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.

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 2.11% 7.60% 3.49%
Phillips 66 Competitors -1.17% 2.05% 1.41%

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 5.1% and pay out 593.5% of their earnings in the form of a dividend. Phillips 66 has raised its dividend for 5 consecutive years.

Institutional and Insider Ownership

69.6% of Phillips 66 shares are held by institutional investors. Comparatively, 47.3% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 0.5% of Phillips 66 shares are held by company insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Phillips 66 has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Phillips 66’s competitors have a beta of 1.30, meaning that their average stock price is 30% more volatile than the S&P 500.

Summary

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

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.

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