Phillips 66 vs ConocoPhillips Which Outperforms?

Phillips 66 and ConocoPhillips were once one company, but split in 2012 to focus on different aspects of the energy industry. Phillips 66 is primarily a downstream company, focusing on refining and marketing fuel and petrochemical products, while ConocoPhillips is an upstream company, involved in exploration and production of oil and natural gas. Both companies have performed well in recent years, but their stock prices and market performance can vary based on a variety of factors in the energy sector.

Phillips 66 or ConocoPhillips?

When comparing Phillips 66 and ConocoPhillips, 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 ConocoPhillips.

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 3.59%, while ConocoPhillips has a dividend yield of 3.05%. 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, ConocoPhillips reports a 5-year dividend growth of 27.51% year and a payout ratio of 41.80%.

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 15.52 and ConocoPhillips's P/E ratio at 11.93. 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 1.82 while ConocoPhillips's P/B ratio is 2.38.

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 ConocoPhillips's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Phillips 66's ROE at 11.27% and ConocoPhillips's ROE at 20.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $124.02 for Phillips 66 and $101.69 for ConocoPhillips. Over the past year, Phillips 66's prices ranged from $119.77 to $174.08, with a yearly change of 45.35%. ConocoPhillips's prices fluctuated between $101.30 and $135.18, with a yearly change of 33.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.