Phillips 66 (NYSE: PSX) and PBF Energy (NYSE:PBF) are both mid-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Valuation & Earnings

This table compares Phillips 66 and PBF Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Phillips 66 $85.78 billion 0.55 $1.56 billion $3.99 23.17
PBF Energy $15.92 billion 0.23 $170.81 million $2.09 15.63

Phillips 66 has higher revenue and earnings than PBF Energy. PBF Energy is trading at a lower price-to-earnings ratio than Phillips 66, indicating that it is currently the more affordable of the two stocks.

Dividends

Phillips 66 pays an annual dividend of $2.80 per share and has a dividend yield of 3.0%. PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Phillips 66 pays out 70.2% of its earnings in the form of a dividend. PBF Energy pays out 57.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Phillips 66 has raised its dividend for 5 consecutive years. PBF Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations for Phillips 66 and PBF Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phillips 66 2 5 8 0 2.40
PBF Energy 1 7 5 0 2.31

Phillips 66 presently has a consensus target price of $92.22, suggesting a potential downside of 0.25%. PBF Energy has a consensus target price of $27.13, suggesting a potential downside of 16.95%. Given Phillips 66’s stronger consensus rating and higher possible upside, analysts plainly believe Phillips 66 is more favorable than PBF Energy.

Risk & Volatility

Phillips 66 has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, PBF Energy has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Insider and Institutional Ownership

69.8% of Phillips 66 shares are held by institutional investors. 0.5% of Phillips 66 shares are held by company insiders. Comparatively, 2.6% of PBF Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Phillips 66 and PBF Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Phillips 66 2.11% 7.58% 3.48%
PBF Energy 1.14% 2.35% 0.78%

Summary

Phillips 66 beats PBF Energy on 12 of the 17 factors compared between the two stocks.

Phillips 66 Company Profile

Phillips 66 is an energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses. The Company operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment gathers, processes, transports and markets natural gas, and transports, stores, fractionates and markets natural gas liquids (NGLs) in the United States. The Chemicals segment consists of its equity investment in Chevron Phillips Chemical Company LLC (CPChem), which manufactures and markets petrochemicals and plastics. The Refining segment buys, sells and refines crude oil and other feedstocks at refineries in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products, such as gasolines, distillates and aviation fuels, primarily in the United States and Europe, as well as includes the manufacturing and marketing of specialty products, and power generation operations.

PBF Energy Company Profile

PBF Energy Inc. (PBF Energy) is a holding company. The Company is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company operates through two segments: Refining and Logistics. It sells its products throughout the Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other regions of the United States and Canada, and ships products to other international destinations. As of December 31, 2016, it owned and operated five domestic oil refineries and related assets. As of December 31, 2016, its refineries had a combined processing capacity, known as throughput, of approximately 900,000 barrels per day (bpd) and a weighted-average Nelson Complexity Index of approximately 12.2. As of December 31, 2016, the Company owned and operated five refineries providing geographic and market diversity.

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