Critical Comparison: Phillips 66 (NYSE:PSX) versus DHT (NYSE:DHT)

DHT (NYSE:DHT) and Phillips 66 (NYSE:PSX) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Dividends

DHT pays an annual dividend of $4.88 per share and has a dividend yield of 19.5%. Phillips 66 pays an annual dividend of $5.08 per share and has a dividend yield of 1.8%. DHT pays out 166.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips 66 pays out 16.2% of its earnings in the form of a dividend. Phillips 66 has raised its dividend for 14 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DHT and Phillips 66, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHT	0	2	1	1	2.75
Phillips 66	0	7	11	2	2.75

DHT presently has a consensus target price of $27.00, indicating a potential upside of 7.83%. Phillips 66 has a consensus target price of $270.19, indicating a potential downside of 4.59%. Given DHT’s higher probable upside, research analysts clearly believe DHT is more favorable than Phillips 66.

Volatility and Risk

DHT has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500. Comparatively, Phillips 66 has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Institutional & Insider Ownership

58.5% of DHT shares are owned by institutional investors. Comparatively, 76.9% of Phillips 66 shares are owned by institutional investors. 0.4% of Phillips 66 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DHT	65.52%	39.40%	28.63%
Phillips 66	7.27%	33.12%	13.04%

Valuation and Earnings

This table compares DHT and Phillips 66″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHT	$498.40 million	8.09	$211.09 million	$2.94	8.52
Phillips 66	$136.56 billion	0.81	$4.40 billion	$31.31	9.04

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

Summary

Phillips 66 beats DHT on 11 of the 17 factors compared between the two stocks.

About DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.

About Phillips 66

Phillips 66 operates as an energy manufacturing and logistics company in the United States, the United Kingdom, Germany, and internationally. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas. The Chemicals segment produces and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; and various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining. The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasolines, distillates, aviation, and renewable. The M&S segment purchases for resale and markets refined petroleum products, including gasolines, distillates, and aviation fuels. This segment also manufactures and markets specialty products, such as base oils and lubricants. Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.