Phillips 66 (NYSE: PSX) is one of 39 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it compare to its rivals? We will compare Phillips 66 to similar companies based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, dividends and risk.

Risk & Volatility

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

Analyst Ratings

This is a summary of current ratings for Phillips 66 and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phillips 66 1 6 8 0 2.47
Phillips 66 Competitors 369 1751 2168 111 2.46

Phillips 66 currently has a consensus price target of $92.22, suggesting a potential upside of 1.26%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 8.93%. Given Phillips 66’s rivals higher possible upside, analysts plainly believe Phillips 66 has less favorable growth aspects than its rivals.

Dividends

Phillips 66 pays an annual dividend of $2.80 per share and has a dividend yield of 3.1%. 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 584.2% of their earnings in the form of a dividend. Phillips 66 has raised its dividend for 5 consecutive years.

Profitability

This table compares Phillips 66 and its rivals’ 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 -1.13% 2.01% 1.38%

Insider & Institutional 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 company insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Phillips 66 and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Phillips 66 $79.20 billion $2.21 billion 22.83
Phillips 66 Competitors $45.54 billion $4.41 billion 21.80

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

Summary

Phillips 66 beats its rivals 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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