Phillips 66 vs Exxon Mobil Which Is More Attractive?

Phillips 66 and Exxon Mobil are two prominent companies in the energy sector, both with a long history of success in the industry. While both companies have seen fluctuations in their stock prices over the years, they have remained key players in the market. Phillips 66 is known for its strong refining and marketing operations, while Exxon Mobil is a major integrated oil and gas company. Investors interested in these stocks should consider factors such as financial performance, industry trends, and company strategies before making investment decisions.

Phillips 66 or Exxon Mobil?

When comparing Phillips 66 and Exxon Mobil, 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 Exxon Mobil.

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 Exxon Mobil has a dividend yield of 3.41%. 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, Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 47.99%.

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 Exxon Mobil's P/E ratio at 14.92. 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 Exxon Mobil's P/B ratio is 1.87.

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 Exxon Mobil'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 Exxon Mobil's ROE at 14.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $125.22 for Phillips 66 and $111.75 for Exxon Mobil. Over the past year, Phillips 66's prices ranged from $119.77 to $174.08, with a yearly change of 45.35%. Exxon Mobil's prices fluctuated between $95.77 and $126.34, with a yearly change of 31.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.