Tesoro Corporation (ANDV) and Marathon Petroleum Corporation (MPC) Head to Head Contrast
Tesoro Corporation (NYSE: ANDV) and Marathon Petroleum Corporation (NYSE:MPC) are both large-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.
This table compares Tesoro Corporation and Marathon Petroleum Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marathon Petroleum Corporation||1.34%||5.52%||2.45%|
This is a summary of current recommendations and price targets for Tesoro Corporation and Marathon Petroleum Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marathon Petroleum Corporation||0||4||10||1||2.80|
Tesoro Corporation currently has a consensus target price of $109.14, suggesting a potential upside of 5.67%. Marathon Petroleum Corporation has a consensus target price of $59.43, suggesting a potential upside of 5.97%. Given Marathon Petroleum Corporation’s higher possible upside, analysts plainly believe Marathon Petroleum Corporation is more favorable than Tesoro Corporation.
Tesoro Corporation pays an annual dividend of $2.36 per share and has a dividend yield of 2.3%. Marathon Petroleum Corporation pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Tesoro Corporation pays out 84.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Marathon Petroleum Corporation pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tesoro Corporation has increased its dividend for 6 consecutive years.
Valuation & Earnings
This table compares Tesoro Corporation and Marathon Petroleum Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marathon Petroleum Corporation||$60.96 billion||0.47||$4.41 billion||$1.76||31.86|
Marathon Petroleum Corporation has higher revenue and earnings than Tesoro Corporation. Marathon Petroleum Corporation is trading at a lower price-to-earnings ratio than Tesoro Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
77.5% of Tesoro Corporation shares are held by institutional investors. Comparatively, 78.3% of Marathon Petroleum Corporation shares are held by institutional investors. 0.9% of Tesoro Corporation shares are held by insiders. Comparatively, 1.1% of Marathon Petroleum Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Tesoro Corporation has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Marathon Petroleum Corporation has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.
Marathon Petroleum Corporation beats Tesoro Corporation on 10 of the 16 factors compared between the two stocks.
Tesoro Corporation Company Profile
Andeavor, formerly Tesoro Corporation, is an independent petroleum refining, logistics and marketing company. he Company operates through three segments. The Refining operating segment refines crude oil and other feedstocks into transportation fuels, such as gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a range of customers within its markets. The TLLP segment comprises Tesoro Logistics LP’s (TLLP) assets and operations, and includes certain crude oil and natural gas gathering assets, natural gas and natural gas liquids (NGLs) processing assets, and crude oil and refined products terminaling, and transportation. The marketing segment sells transportation fuels through branded and unbranded channels.
Marathon Petroleum Corporation Company Profile
Marathon Petroleum Corporation is engaged in refining, marketing, retail and transportation businesses in the United States and the largest east of the Mississippi. The Company operates through three segments: Refining & Marketing; Speedway; and Midstream. The Refining & Marketing segment refines crude oil and other feedstocks at the Company’s seven refineries in the Gulf Coast and Midwest regions of the United States. Its Speedway segment sells transportation fuels and convenience products in the retail market in the Midwest, East Coast and Southeast regions of the United States. The Company’s Midstream is engaged in the operations of MPLX LP and certain other related operations. It gathers, processes and transports natural gas, natural gas liquids (NGLs), crude oil and refined products. MPLX is a limited partnership which owns, operates, develops and acquires midstream energy infrastructure assets.
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