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

Phillips 66 and Valero Energy Corporation are both Oil & Gas Refining & Marketing companies. Phillips 66 and Valero Energy Corporation are of similar size ($109.1B and $101.3B). Phillips 66 trades at the lower P/E: 14.5× against 16.1×. 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; Valero Energy Corporation yields more (2.99% vs 2.97%). Across the 22 metrics below, Valero Energy Corporation leads on 13 and Phillips 66 on 9.

Valuation

Metric PSX VLO Oil & Gas Refining & Marketing median
P/E 14.51 16.06 15.04
P/S 0.67 0.82 0.41
P/B 3.14 4.03 1.87
Price to free cash flow 16.04 12.14 8.78
EV/EBITDA 10.29 8.86 7.94
EV/Sales 0.78 0.84 0.59
Earnings yield 6.89% 6.23% 6.15%
Free cash flow yield 6.24% 8.24% 10.47%

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%) —
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 2.97% 2.99% 3.64%
Payout ratio 0.17 0.14 0.14

Size

Metric PSX VLO Oil & Gas Refining & Marketing median
Market cap 101.31b 109.13b 4.12b

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