Comparing Phillips 66 Partners (PSXP) & Mplx (MPLX)

Phillips 66 Partners (NYSE: PSXP) and Mplx (NYSE:MPLX) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Phillips 66 Partners and Mplx, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phillips 66 Partners 0 5 6 0 2.55
Mplx 0 4 8 0 2.67

Phillips 66 Partners presently has a consensus target price of $58.20, indicating a potential upside of 14.70%. Mplx has a consensus target price of $41.70, indicating a potential upside of 17.17%. Given Mplx’s stronger consensus rating and higher possible upside, analysts clearly believe Mplx is more favorable than Phillips 66 Partners.

Dividends

Phillips 66 Partners pays an annual dividend of $2.71 per share and has a dividend yield of 5.3%. Mplx pays an annual dividend of $2.43 per share and has a dividend yield of 6.8%. Phillips 66 Partners pays out 106.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mplx pays out 267.0% 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 Partners has increased its dividend for 4 consecutive years and Mplx has increased its dividend for 4 consecutive years.

Insider & Institutional Ownership

37.2% of Phillips 66 Partners shares are held by institutional investors. Comparatively, 64.0% of Mplx shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Phillips 66 Partners has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Mplx has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Phillips 66 Partners 44.16% 26.73% 11.05%
Mplx 17.90% 6.99% 3.70%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Phillips 66 Partners $1.17 billion 5.28 $461.00 million $2.55 19.90
Mplx $3.87 billion 3.82 $794.00 million $0.91 39.11

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

Summary

Mplx beats Phillips 66 Partners on 8 of the 15 factors compared between the two stocks.

Phillips 66 Partners Company Profile

Phillips 66 Partners LP (Phillips 66) owns, operates, develops and acquires fee-based crude oil, refined petroleum product and natural gas liquids (NGL) pipelines, terminals and other transportation and midstream assets. The Company’s assets consist of systems, such as Clifton Ridge Crude System, Eagle Ford Gathering System, Ponca Crude System, Billings Crude System, Borger Crude System, Sweeny to Pasadena Products System, Hartford Connector Products System, Gold Line Products System, Cross-Channel Connector Products System, Ponca Products System, Billings Products System, Bayway Products System, Standish Pipeline, Borger Products System, River Parish NGL System, Medford Spheres, Bayway Rail Rack, Ferndale Rail Rack, Sand Hills/Southern Hills Joint Ventures, Explorer Pipeline Joint Venture, Bakken Joint Ventures, Bayou Bridge Pipeline Joint Venture, STACK Pipeline Joint Venture, and Sweeny Fractionator and Clemens Caverns.

Mplx Company Profile

MPLX LP is a master limited partnership (MLP) formed by Marathon Petroleum Corporation (MPC) to own, operate, develop and acquire midstream energy infrastructure assets. The Company is engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering, transportation and storage of crude oil and refined petroleum products. Its segments are Logistics and Storage (L&S), and Gathering and Processing (G&P). The L&S segment includes transportation and storage of crude oil, refined products and other hydrocarbon-based products. As of December 31, 2016, the G&P segment operated various natural gas gathering systems that had a combined 5,439 million cubic feet per day (mmcf/d) throughput capacity. As of December 31, 2016, its assets included infrastructure to support MPC, including approximately 2,900 miles of crude oil and refined product pipelines across nine states.

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