Exxon Mobil vs Phillips 66 Which Is Stronger?

Exxon Mobil and Phillips 66 are two prominent companies in the energy sector. Both companies have a long history of success and have shown resilience in the face of changing market conditions. Exxon Mobil is known for its integrated oil and gas operations, while Phillips 66 focuses on refining, marketing, and midstream operations. Investors looking to invest in the energy sector may consider comparing the stocks of these two companies to make an informed decision.

Exxon Mobil or Phillips 66?

When comparing Exxon Mobil 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 Exxon Mobil 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. Exxon Mobil has a dividend yield of 3.46%, while Phillips 66 has a dividend yield of 3.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 47.99%. 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 Exxon Mobil P/E ratio at 14.68 and Phillips 66's P/E ratio at 15.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Exxon Mobil P/B ratio is 1.84 while Phillips 66's P/B ratio is 1.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Exxon Mobil has seen a 5-year revenue growth of 0.25%, while Phillips 66's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Exxon Mobil's ROE at 14.23% 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 $110.25 for Exxon Mobil and $122.29 for Phillips 66. Over the past year, Exxon Mobil's prices ranged from $95.77 to $126.34, with a yearly change of 31.92%. 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.