Valero Energy (VLO) Competitors

Valero Energy (NYSE:VLO) and Phillips 66 (NYSE:PSX) are both large-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, media sentiment, institutional ownership, analyst recommendations, community ranking, dividends and risk.

Does the media favor VLO or PSX?

In the previous week, Phillips 66 had 2 more articles in the media than Valero Energy. MarketBeat recorded 24 mentions for Phillips 66 and 22 mentions for Valero Energy. Valero Energy's average media sentiment score of 1.37 beat Phillips 66's score of 1.22 indicating that Valero Energy is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Valero Energy	13 Very Positive mention(s)	5 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Phillips 66	21 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community prefer VLO or PSX?

Valero Energy received 236 more outperform votes than Phillips 66 when rated by MarketBeat users. Likewise, 71.11% of users gave Valero Energy an outperform vote while only 60.80% of users gave Phillips 66 an outperform vote.

Company	Underperform	Outperform
Valero Energy	Outperform Votes 1041 71.11%	Underperform Votes 423 28.89%
Phillips 66	Outperform Votes 805 60.80%	Underperform Votes 519 39.20%

Do institutionals & insiders hold more shares of VLO or PSX?

78.7% of Valero Energy shares are held by institutional investors. Comparatively, 76.9% of Phillips 66 shares are held by institutional investors. 0.5% of Valero Energy shares are held by insiders. Comparatively, 0.2% of Phillips 66 shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Do analysts prefer VLO or PSX?

Valero Energy currently has a consensus price target of $154.57, suggesting a potential upside of 9.46%. Phillips 66 has a consensus price target of $147.93, suggesting a potential upside of 22.62%. Given Phillips 66's higher probable upside, analysts clearly believe Phillips 66 is more favorable than Valero Energy.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valero Energy	1 Sell rating(s)	2 Hold rating(s)	10 Buy rating(s)	2 Strong Buy rating(s)	2.87
Phillips 66	0 Sell rating(s)	4 Hold rating(s)	11 Buy rating(s)	0 Strong Buy rating(s)	2.73

Which has more volatility & risk, VLO or PSX?

Valero Energy has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Phillips 66 has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Is VLO or PSX more profitable?

Valero Energy has a net margin of 2.74% compared to Phillips 66's net margin of 2.24%. Phillips 66's return on equity of 13.12% beat Valero Energy's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Valero Energy	2.74%	13.07%	5.95%
Phillips 66	2.24%	13.12%	5.32%

Which has higher valuation and earnings, VLO or PSX?

Valero Energy has higher earnings, but lower revenue than Phillips 66. Valero 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valero Energy	$144.77B	0.31	$8.84B	$11.15	12.66
Phillips 66	$149.89B	0.33	$7.02B	$7.79	15.49

Is VLO or PSX a better dividend stock?

Valero Energy pays an annual dividend of $4.28 per share and has a dividend yield of 3.0%. Phillips 66 pays an annual dividend of $4.60 per share and has a dividend yield of 3.8%. Valero Energy pays out 38.4% of its earnings in the form of a dividend. Phillips 66 pays out 59.1% 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 increased its dividend for 13 consecutive years. Phillips 66 is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Valero Energy beats Phillips 66 on 13 of the 22 factors compared between the two stocks.