WallStSmart

Phillips 66 (PSX)vsValero Energy Corporation (VLO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Phillips 66 generates 14% more annual revenue ($134.49B vs $117.84B). VLO leads profitability with a 3.6% profit margin vs 3.1%. PSX appears more attractively valued with a PEG of 1.06. VLO earns a higher WallStSmart Score of 59/100 (C).

PSX

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 5.0Value: 7.3Quality: 6.5
Piotroski: 5/9Altman Z: 3.20

VLO

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 4.7Quality: 7.0
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSXUndervalued (+26.2%)

Margin of Safety

+26.2%

Fair Value

$218.92

Current Price

$178.47

$40.45 discount

UndervaluedFair: $218.92Overvalued
VLOUndervalued (+9.9%)

Margin of Safety

+9.9%

Fair Value

$226.38

Current Price

$251.63

$25.25 discount

UndervaluedFair: $226.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PSX4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
3.2010/10

Safe zone — low bankruptcy risk

Market CapQuality
$71.55B9/10

Large-cap with strong market position

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

VLO3 strengths · Avg: 9.0/10
EPS GrowthGrowth
317.9%10/10

Earnings expanding 317.9% YoY

Market CapQuality
$73.82B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.23B8/10

Generating 1.2B in free cash flow

Areas to Watch

PSX4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
0.6%3/10

Operating margin of 0.6%

EPS GrowthGrowth
-56.8%2/10

Earnings declined 56.8%

Free Cash FlowQuality
$-2.85B2/10

Negative free cash flow — burning cash

VLO2 concerns · Avg: 2.5/10
Profit MarginProfitability
3.6%3/10

3.6% margin — thin

PEG RatioValuation
4.082/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PSX

The strongest argument for PSX centers on Altman Z-Score, Market Cap, P/E Ratio. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : VLO

The strongest argument for VLO centers on EPS Growth, Market Cap, Free Cash Flow.

Bear Case : PSX

The primary concerns for PSX are Profit Margin, Operating Margin, EPS Growth. Thin 3.1% margins leave little buffer for downturns.

Bear Case : VLO

The primary concerns for VLO are Profit Margin, PEG Ratio. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

PSX carries more volatility with a beta of 0.69 — expect wider price swings.

PSX is growing revenue faster at 6.9% — sustainability is the question.

VLO generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor OIL & GAS REFINING & MARKETING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

VLO scores higher overall (59/100 vs 54/100). PSX offers better value entry with a 26.2% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Phillips 66

ENERGY · OIL & GAS REFINING & MARKETING · USA

The Phillips 66 Company is an American multinational energy company headquartered in Westchase, Houston, Texas.

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Valero Energy Corporation

ENERGY · OIL & GAS REFINING & MARKETING · USA

Valero Energy Corporation is a Fortune 500 international manufacturer and marketer of transportation fuels, other petrochemical products, and power. It is headquartered in San Antonio, Texas, United States.

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