Marathon Petroleum Corporation (MPC) vs Phillips 66 (PSX)

Marathon Petroleum Corporation and Phillips 66 are both Oil & Gas Refining & Marketing companies. Marathon Petroleum Corporation and Phillips 66 are of similar size ($108.5B and $101.3B). Marathon Petroleum Corporation trades at the lower P/E: 13.5× against 14.5×. Marathon Petroleum Corporation grew revenue faster over the last twelve months: 15.0% against 14.4%. Marathon Petroleum Corporation has the higher net margin (5.57% vs 4.66%) and the higher return on invested capital (17.4% vs 11.1%). Both pay a dividend; Phillips 66 yields more (2.97% vs 2.00%). Across the 22 metrics below, Marathon Petroleum Corporation leads on 12 and Phillips 66 on 10.

Valuation

Metric MPC PSX Oil & Gas Refining & Marketing median
P/E 13.51 14.51 15.04
P/S 0.74 0.67 0.41
P/B 4.42 3.14 1.87
Price to free cash flow 8.19 16.04 8.78
EV/EBITDA 7.94 10.29 7.94
EV/Sales 0.90 0.78 0.59
Earnings yield 7.40% 6.89% 6.15%
Free cash flow yield 12.22% 6.24% 10.47%

Profitability

Metric MPC PSX Oil & Gas Refining & Marketing median
Gross margin 12.50% 13.10% 12.22%
Operating margin 9.20% 5.74% 5.35%
Net margin 5.57% 4.66% 2.08%
Free cash flow margin 9.05% 4.20% 4.25%
Return on equity 34.93% 23.13% 11.39%
Return on assets 9.90% 8.99% 5.22%
Return on invested capital 17.40% 11.10% 11.54%

Growth

Metric MPC PSX Oil & Gas Refining & Marketing median
Revenue growth (TTM) 14.99% 14.44% 13.37%
EPS growth (last fiscal year) 31.15% 116.23% —
Revenue growth, 5-year CAGR 13.72% 15.60% 12.77%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MPC PSX Oil & Gas Refining & Marketing median
Debt to equity 1.28 0.63 0.44
Current ratio 1.25 1.32 1.32
Net debt to EBITDA 2.52 2.07 2.07

Dividend

Metric MPC PSX Oil & Gas Refining & Marketing median
Dividend yield 2.00% 2.97% 3.64%
Payout ratio 0.10 0.17 0.14

Size

Metric MPC PSX Oil & Gas Refining & Marketing median
Market cap 108.48b 101.31b 4.12b

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