ConocoPhillips vs Phillips 66

ConocoPhillips and Phillips 66 are two major players in the oil and gas industry, but they have distinct differences in terms of their business operations and stock performance. ConocoPhillips is primarily focused on exploration, production, and refining, while Phillips 66 is more focused on refining and marketing activities. Investors looking to invest in these stocks should consider factors such as market conditions, company performance, and industry trends to make informed decisions. It is essential to conduct thorough research and seek advice from financial professionals before investing in either ConocoPhillips or Phillips 66 stocks.

ConocoPhillips or Phillips 66?

When comparing ConocoPhillips 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 ConocoPhillips 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. ConocoPhillips has a dividend yield of 2.78%, while Phillips 66 has a dividend yield of 3.35%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ConocoPhillips reports a 5-year dividend growth of 27.51% year and a payout ratio of 42.90%. On the other hand, Phillips 66 reports a 5-year dividend growth of 6.26% year and a payout ratio of 36.23%.

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 ConocoPhillips P/E ratio at 11.50 and Phillips 66's P/E ratio at 10.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ConocoPhillips P/B ratio is 2.47 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, ConocoPhillips has seen a 5-year revenue growth of 0.49%, while Phillips 66's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ConocoPhillips's ROE at 21.80% and Phillips 66's ROE at 16.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $105.12 for ConocoPhillips and $131.28 for Phillips 66. Over the past year, ConocoPhillips's prices ranged from $101.30 to $135.18, with a yearly change of 33.45%. Phillips 66's prices fluctuated between $107.85 and $174.08, with a yearly change of 61.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.