Boeing vs Phillips 66 Which Is More Promising?

Boeing and Phillips 66 are two reputable companies in their respective industries - aerospace and energy. Boeing, known for its aircraft manufacturing, has faced challenges in recent years, including the grounding of its popular 737 Max planes. On the other hand, Phillips 66, a leading energy company, has shown resilience despite fluctuations in oil prices. Investors interested in these stocks should carefully consider their financial health, market conditions, and long-term outlook before making any investment decisions.

Boeing or Phillips 66?

When comparing Boeing and Phillips 66, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Boeing and Phillips 66.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Boeing has a dividend yield of -%, while Phillips 66 has a dividend yield of 3.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Boeing reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Phillips 66 reports a 5-year dividend growth of 6.26% year and a payout ratio of 55.42%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Boeing P/E ratio at -12.19 and Phillips 66's P/E ratio at 16.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Boeing P/B ratio is -4.13 while Phillips 66's P/B ratio is 1.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Boeing has seen a 5-year revenue growth of -0.26%, while Phillips 66's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Boeing's ROE at 42.10% and Phillips 66's ROE at 11.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $154.27 for Boeing and $128.72 for Phillips 66. Over the past year, Boeing's prices ranged from $137.03 to $267.54, with a yearly change of 95.24%. Phillips 66's prices fluctuated between $119.77 and $174.08, with a yearly change of 45.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.