Phillips 66 vs Chevron Which Outperforms?

Phillips 66 and Chevron are two major players in the oil and gas industry, both offering investors opportunities for potential growth and profitability. While Phillips 66 is known for its refining and marketing operations, Chevron is a leading integrated energy company with a focus on exploration, production, and refining. Investors may consider factors such as financial performance, market trends, and industry outlook when comparing the two stocks for investment opportunities. It is important to conduct thorough research and analysis before making any investment decisions.

Phillips 66 or Chevron?

When comparing Phillips 66 and Chevron, 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 Chevron.

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 3.67%, while Chevron has a dividend yield of 4.24%. 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, Chevron reports a 5-year dividend growth of 6.16% year and a payout ratio of 70.19%.

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 15.20 and Chevron's P/E ratio at 16.61. 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 1.78 while Chevron's P/B ratio is 1.77.

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 Chevron's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Phillips 66's ROE at 11.27% and Chevron's ROE at 10.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $122.29 for Phillips 66 and $153.08 for Chevron. Over the past year, Phillips 66's prices ranged from $119.77 to $174.08, with a yearly change of 45.35%. Chevron's prices fluctuated between $135.37 and $167.11, with a yearly change of 23.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.