Phillips 66 (PSX) vs Valero Energy Corporation (VLO)

Phillips 66 and Valero Energy Corporation are both Oil & Gas Refining & Marketing companies. Valero Energy Corporation is the larger, with a market value of $127.9B against $115.4B — 1.1× the size. Phillips 66 trades at the lower P/E: 16.7× against 18.4×. Phillips 66 grew revenue faster over the last twelve months: 14.4% against 12.6%. Valero Energy Corporation has the higher net margin (5.17% vs 4.66%) and the higher return on invested capital (19.7% vs 11.1%). Both pay a dividend; Phillips 66 yields more (1.71% vs 1.06%). Across the 22 metrics below, Valero Energy Corporation leads on 12 and Phillips 66 on 10.

Valuation

Metric PSX VLO Oil & Gas Refining & Marketing median
P/E 16.66 18.45 16.35
P/S 0.77 0.94 0.44
P/B 3.60 4.63 2.05
Price to free cash flow 18.41 13.94 9.98
EV/EBITDA 11.60 10.14 8.04
EV/Sales 0.88 0.96 0.59
Earnings yield 6.00% 5.42% 5.71%
Free cash flow yield 5.43% 7.17% 9.13%

Profitability

Metric PSX VLO Oil & Gas Refining & Marketing median
Gross margin 13.10% 8.03% 12.22%
Operating margin 5.74% 7.18% 5.35%
Net margin 4.66% 5.17% 2.08%
Free cash flow margin 4.20% 6.73% 4.25%
Return on equity 23.13% 26.10% 11.39%
Return on assets 8.99% 11.61% 5.22%
Return on invested capital 11.10% 19.71% 11.54%

Growth

Metric PSX VLO Oil & Gas Refining & Marketing median
Revenue growth (TTM) 14.44% 12.62% 13.37%
EPS growth (last fiscal year) 116.23% (11.77%) 31.15%
Revenue growth, 5-year CAGR 15.60% 13.58% 12.77%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PSX VLO Oil & Gas Refining & Marketing median
Debt to equity 0.63 0.40 0.44
Current ratio 1.32 1.64 1.32
Net debt to EBITDA 2.07 0.94 2.07

Dividend

Metric PSX VLO Oil & Gas Refining & Marketing median
Dividend yield 1.71% 1.06% 1.71%
Payout ratio 0.29 0.20 0.35

Size

Metric PSX VLO Oil & Gas Refining & Marketing median
Market cap 115.40b 127.86b 4.71b

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