Marathon Petroleum Corporation (MPC) vs Valero Energy Corporation (VLO)

Marathon Petroleum Corporation and Valero Energy Corporation are both Oil & Gas Refining & Marketing companies. Marathon Petroleum Corporation and Valero Energy Corporation are of similar size ($109.1B and $108.5B). Marathon Petroleum Corporation trades at the lower P/E: 13.5× against 16.1×. Marathon Petroleum Corporation grew revenue faster over the last twelve months: 15.0% against 12.6%. Marathon Petroleum Corporation has the higher net margin (5.57% vs 5.17%) and the lower return on invested capital (17.4% vs 19.7%). Both pay a dividend; Valero Energy Corporation yields more (2.99% vs 2.00%). Across the 22 metrics below, Marathon Petroleum Corporation leads on 14 and Valero Energy Corporation on 8.

Valuation

Metric MPC VLO Oil & Gas Refining & Marketing median
P/E 13.51 16.06 15.04
P/S 0.74 0.82 0.41
P/B 4.42 4.03 1.87
Price to free cash flow 8.19 12.14 8.78
EV/EBITDA 7.94 8.86 7.94
EV/Sales 0.90 0.84 0.59
Earnings yield 7.40% 6.23% 6.15%
Free cash flow yield 12.22% 8.24% 10.47%

Profitability

Metric MPC VLO Oil & Gas Refining & Marketing median
Gross margin 12.50% 8.03% 12.22%
Operating margin 9.20% 7.18% 5.35%
Net margin 5.57% 5.17% 2.08%
Free cash flow margin 9.05% 6.73% 4.25%
Return on equity 34.93% 26.10% 11.39%
Return on assets 9.90% 11.61% 5.22%
Return on invested capital 17.40% 19.71% 11.54%

Growth

Metric MPC VLO Oil & Gas Refining & Marketing median
Revenue growth (TTM) 14.99% 12.62% 13.37%
EPS growth (last fiscal year) 31.15% (11.77%) —
Revenue growth, 5-year CAGR 13.72% 13.58% 12.77%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MPC VLO Oil & Gas Refining & Marketing median
Debt to equity 1.28 0.40 0.44
Current ratio 1.25 1.64 1.32
Net debt to EBITDA 2.52 0.94 2.07

Dividend

Metric MPC VLO Oil & Gas Refining & Marketing median
Dividend yield 2.00% 2.99% 3.64%
Payout ratio 0.10 0.14 0.14

Size

Metric MPC VLO Oil & Gas Refining & Marketing median
Market cap 108.48b 109.13b 4.12b

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