Phillips 66 (NYSE:PSX) vs. Neste OYJ (OTCMKTS:NTOIY) Head to Head Contrast

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Neste OYJ and Phillips 66, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neste OYJ	0	2	1	4	3.29
Phillips 66	0	6	12	2	2.80

Phillips 66 has a consensus target price of $246.50, suggesting a potential downside of 6.79%. Given Phillips 66’s higher probable upside, analysts clearly believe Phillips 66 is more favorable than Neste OYJ.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neste OYJ	7.35%	19.90%	9.16%
Phillips 66	4.54%	19.93%	7.62%

Dividends

Neste OYJ pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. Phillips 66 pays an annual dividend of $5.08 per share and has a dividend yield of 1.9%. Neste OYJ pays out 2.6% of its earnings in the form of a dividend. Phillips 66 pays out 28.9% 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 14 consecutive years. Phillips 66 is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Neste OYJ has a beta of -0.82, meaning that its share price is 182% less volatile than the S&P 500. Comparatively, Phillips 66 has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Valuation and Earnings

This table compares Neste OYJ and Phillips 66″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neste OYJ	$21.51 billion	1.27	$162.92 million	$1.15	15.41
Phillips 66	$152.17 billion	0.69	$4.40 billion	$17.55	15.07

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

Insider & Institutional Ownership

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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Phillips 66 beats Neste OYJ on 11 of the 18 factors compared between the two stocks.

About Neste OYJ

Neste Oyj provides renewable diesel and sustainable aviation fuel in Finland, and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. The company operates in four segments: Renewable Products, Oil Products, Marketing & Services, and Others. The Renewable Products segment produces, markets, and sells renewable diesel, sustainable aviation fuel, renewable solvents, and feedstock for bioplastics to wholesale markets. The Oil Products segment produces, markets, and sells diesel, gasoline, aviation and marine fuels, light and heavy fuel oils, and gasoline components, as well as special fuels, such as small-engine gasoline, solvents, liquid gases, and bitumen. This segment serves retailers and distributors, oil majors and trading companies, petrochemicals companies, and companies marketing lubricants and solvents, as well as road transportation, non-road uses, aviation and marine sectors. The Marketing & Services segment markets and sells cleaner fuels and oil products, and associated services to private motorists, transport companies, customers in aviation, shipping, industrial and agricultural sectors, municipalities, farmers, and heating oil customers through a network of service stations, as well as direct sales and distributors. The Others segment offers engineering solutions. The company was formerly known as Neste Oil Oyj and changed its name to Neste Oyj in June 2015. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland.

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.