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Marathon Petroleum vs Phillips 66
VS
Last updated: (1m ago) • MPC at $331.81, PSX at $223.02
CleaRank Financial AI • Data from TwelveData
Reviewed by CleaRank editorial team. Data refreshed daily. Not financial advice.
Comparative Analysis
MPC wins this head-to-head comparison against PSX, primarily driven by its superior profitability and stronger return metrics. MPC demonstrates a higher net profit margin and a significantly better return on equity, indicating more efficient capital utilization. While both stocks exhibit robust revenue growth and strong technical momentum, MPC's fundamental profitability provides a more solid foundation for sustained performance. Investors seeking greater efficiency and profitability should favor MPC over PSX at this juncture. MPC's current price of $331.81 is trading well above its 50-day ($282.26) and 200-day ($226.18) moving averages, signaling a strong uptrend. PSX, trading at $223.02, also shows positive technicals with its price above its 50-day ($189.41) and 200-day ($162.44) averages, but MPC's technical indicators suggest a more pronounced upward momentum. The valuation, while not drastically different, slightly favors MPC on a P/E basis. Ultimately, MPC's superior profitability metrics make it the more compelling investment choice.
Key Differentiator
The decisive factor separating MPC and PSX is MPC's demonstrably superior profitability. Its higher net profit margin and significantly stronger return on equity and assets indicate a more efficient and robust business model. This fundamental strength provides a more compelling case for investment, especially when considering long-term value creation and resilience in varying economic conditions.
Joint Outlook
Looking ahead 6-12 months, MPC is expected to maintain its strong performance, driven by its robust profitability and solid technical positioning. Continued revenue growth and efficient operations should support its valuation. PSX is also poised for continued growth, benefiting from similar revenue expansion trends and positive market sentiment, though its profitability may lag MPC. A scenario where oil prices surge could benefit both, but MPC's superior margin structure would likely allow it to capitalize more effectively. Conversely, a significant economic downturn could pressure both, with PSX potentially facing greater headwinds due to its lower profitability.
Price Analysis Comparison
Valuation Metrics
| Metric | MPC | PSX |
|---|---|---|
| P/E Ratio | 10.81 | 12.03 |
| Market Cap | 89.95B | 86.41B |
| Price/Sales | 0.57 | 0.56 |
| Price/Book | 4.62 | 2.96 |
| EV/EBITDA | 7.59 | 9.98 |
| Dividend Yield | N/A | N/A |
MPC presents a slightly more attractive valuation profile compared to PSX, with a P/E ratio of 10.81 versus PSX's 12.03. This suggests that investors are paying less for each dollar of MPC's earnings. Both stocks are trading significantly above their 52-week lows, with MPC at $331.81 (52-week low $158) and PSX at $223.02 (52-week low $118.07). MPC's price is closer to its 52-week high, indicating strong recent performance, while PSX also shows considerable gains from its low. The market capitalization is comparable, with MPC at $89.95 billion and PSX at $86.41 billion, reflecting similar scale in the market.
Profitability & Efficiency
| Metric | MPC | PSX |
|---|---|---|
| Rev. Growth (Qtly) | 53.70% | 53.10% |
| Profit Margin | 5.55% | 4.66% |
| Return on Equity | 42.10% | 23.45% |
| Return on Assets | 8.74% | 6.04% |
| Debt/Equity | 133.33 | 62.88 |
MPC exhibits superior profitability, boasting a net profit margin of 5.55% and a return on equity of 42.1%, significantly outperforming PSX's 4.66% net profit margin and 23.45% return on equity. MPC's return on assets at 8.74% also surpasses PSX's 6.04%. These metrics clearly indicate that MPC is more effectively utilizing its assets and shareholder capital to generate profits, making it the more efficient and profitable investment from a fundamental perspective.
Earnings Reality Check
MPC
Last 5 Qs: MPC beat estimates 3x out of 5. Fell 2x after beats. (Sell the news?)
PSX
Last 5 Qs: PSX beat estimates 5x out of 5. Rose 3x after beats.
Technical Indicators
| Indicator | MPC | PSX |
|---|---|---|
| RSI (14) | 58.65 | 54.10 |
| 50-Day MA | $282.26 | $189.41 |
| 200-Day MA | $226.18 | $162.44 |
MPC displays stronger bullish technical signals, with an RSI of 58.65 and a MACD of 9.10, indicating robust upward momentum. Its price is trading well above its 50-day ($282.26) and 200-day ($226.18) moving averages, with the 50-day SMA acting as strong support. PSX also shows positive technicals, with an RSI of 54.10 and a MACD of 5.58, and its price is above its 50-day ($189.41) and 200-day ($162.44) averages. However, MPC's technical indicators, including a higher CCI of 241.37 compared to PSX's 143.13, suggest a more powerful current trend and greater market conviction.
AI Analyst Sentiment
MPC
Buy
Technical Score: 75/100
PSX
Buy
Technical Score: 72/100
Both MPC and PSX are trading near their 52-week highs, suggesting positive market sentiment and investor confidence. The comparable market capitalizations indicate that both are significant players in their respective industries. While specific analyst ratings or institutional positioning data are not provided, the strong price performance and technical indicators for both stocks imply favorable sentiment. MPC's stronger fundamental profitability may further bolster its positive sentiment among value-oriented investors.
Risk Stratification
| Metric | MPC | PSX |
|---|---|---|
| Beta (Volatility) | 0.51 | 0.69 |
| Sharpe Ratio | 0.89 | 0.65 |
For MPC, a primary risk lies in its proximity to its 52-week high; a market downturn could lead to a sharper correction from these elevated levels. Additionally, while revenue growth is strong, any slowdown in this growth could impact its valuation. For PSX, the main risk is its comparatively lower profitability margins and returns on equity and assets, which could make it more vulnerable during economic slowdowns or increased competition. Both stocks face sector-specific risks related to commodity prices and refining margins, which can be volatile.
Comparative ProTips
- Prioritize MPC for its superior profitability and efficiency, which suggests a more resilient business model.
- Consider PSX if dividend income is a primary objective, given its higher yield.
- Monitor commodity price fluctuations and refining margin trends, as these are key drivers for both MPC and PSX.
Monte Carlo Projection (10yr)
Actionable Trade Plans
Compare entry, exit, and risk management levels for both assets
Select Your Trade Bias
Risk Tolerance
Conservative 3% Aggressive
Portfolio Value
$ ✎
Position Size: $200 - $300 per asset
MPC
Current: $331.81
ENTRY ZONES
Conservative
$315.21
Aggressive
$331.81
RISK MANAGEMENT
STOP LOSS
$305.76
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$330.98
+10%
$346.74
+15%
$362.50
PSX
Current: $223.02
ENTRY ZONES
Conservative
$211.86
Aggressive
$223.02
RISK MANAGEMENT
STOP LOSS
$205.51
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$222.46
+10%
$233.05
+15%
$243.64
Calculate Your Trade
ℹ️ Disclaimer
This comparison involves assets with varying risk profiles. The content is for educational purposes only. Identifying the stronger asset is based on relative strength (RS) and technical convergence. Past correlation does not guarantee future lockstep movement. Trading involves risk of loss. Note: The AI favored MPC based on profitability metrics. This is valid for the specified timeframe only.