Analyzing Phillips 66 (PSX) & Its Rivals

Phillips 66 (NYSE:PSX) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its peers? We will compare Phillips 66 to similar companies based on the strength of its analyst recommendations, dividends, earnings, valuation, institutional ownership, profitability and risk.

Insider & Institutional Ownership

76.9% of Phillips 66 shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 0.4% of Phillips 66 shares are held by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Phillips 66 and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Phillips 66	$168.19 billion	$4.40 billion	8.42
Phillips 66 Competitors	$273.21 billion	$5.52 billion	-0.99

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Phillips 66 and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phillips 66	0	8	11	2	2.71
Phillips 66 Competitors	5999	27054	40922	2431	2.52

Phillips 66 presently has a consensus target price of $270.12, suggesting a potential upside of 2.47%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 27.06%. Given Phillips 66’s peers higher possible upside, analysts plainly believe Phillips 66 has less favorable growth aspects than its peers.

Risk & Volatility

Phillips 66 has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Phillips 66’s peers have a beta of -3.75, indicating that their average share price is 475% less volatile than the S&P 500.

Dividends

Phillips 66 pays an annual dividend of $5.32 per share and has a dividend yield of 2.0%. Phillips 66 pays out 17.0% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.9% and pay out -125.8% of their earnings in the form of a dividend. Phillips 66 has raised its dividend for 14 consecutive years. Phillips 66 lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

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	7.27%	33.12%	13.04%
Phillips 66 Competitors	-455.77%	19.32%	6.65%

Summary

Phillips 66 beats its peers on 8 of the 15 factors compared.

About Phillips 66

Phillips 66 (NYSE: PSX) is an integrated energy company with businesses spanning refining, midstream operations, chemicals, and marketing. It processes crude oil and other feedstocks into transportation fuels and other petroleum products, including gasoline, diesel, and jet fuel. The company’s midstream operations include the transportation, processing, storage, and marketing of crude oil, natural gas, natural gas liquids, and refined products. Phillips 66 also markets fuels and related products through retail and wholesale channels, including under the Phillips 66, 76, and JET brands.