Phillips 66 vs Shell

Phillips 66 and Shell are two major players in the oil and gas industry, with both companies having a long-standing history of delivering value to their shareholders. Phillips 66, a refining and marketing company, has shown steady growth and strong financial performance, while Shell, a global energy company, has a diverse portfolio that includes exploration, production, and refining operations. Both stocks have their own unique strengths and weaknesses, making them attractive options for investors looking to capitalize on the energy sector.

Phillips 66 or Shell?

When comparing Phillips 66 and Shell, 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 Shell.

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 3.35%, while Shell has a dividend yield of 4.13%. 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 36.23%. On the other hand, Shell reports a 5-year dividend growth of -8.03% year and a payout ratio of 47.67%.

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 10.85 and Shell's P/E ratio at 11.42. 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 1.89 while Shell's P/B ratio is 1.13.

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 Shell's is -0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Phillips 66's ROE at 16.83% and Shell's ROE at 9.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $131.28 for Phillips 66 and $65.97 for Shell. Over the past year, Phillips 66's prices ranged from $107.85 to $174.08, with a yearly change of 61.41%. Shell's prices fluctuated between $60.34 and $74.61, with a yearly change of 23.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.