Phillips 66 vs Boeing Which Outperforms?

Phillips 66 and Boeing are two renowned companies in the industrial sector, with both enjoying a strong presence in the stock market. Phillips 66, a leading energy manufacturing and logistics company, has seen steady growth due to its robust refining and chemicals business. On the other hand, Boeing, a global aerospace company, has faced challenges in recent years with the grounding of its 737 MAX aircraft affecting its stock performance. Investors are closely monitoring these two stocks to assess their potential for growth and profitability in the future.

Phillips 66 or Boeing?

When comparing Phillips 66 and Boeing, 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 Phillips 66 and Boeing.

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. Phillips 66 has a dividend yield of 3.58%, while Boeing has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Phillips 66 reports a 5-year dividend growth of 6.26% year and a payout ratio of 55.42%. On the other hand, Boeing reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Phillips 66 P/E ratio at 15.56 and Boeing's P/E ratio at -12.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Phillips 66 P/B ratio is 1.83 while Boeing's P/B ratio is -4.31.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $125.22 for Phillips 66 and $159.43 for Boeing. Over the past year, Phillips 66's prices ranged from $119.77 to $174.08, with a yearly change of 45.35%. Boeing's prices fluctuated between $137.03 and $267.54, with a yearly change of 95.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.