Phillips 66 vs Valero Energy
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KIRA’s take AI analyst
I put Phillips 66 and Valero Energy side by side, using each one’s latest annual report. Here is what stands out:
- Phillips 66 is the larger business, with $132.4B of revenue in fiscal 2025 against $122.7B for Valero Energy.
- Valero Energy grew revenue faster (−5.5%, against −7.5%).
- Phillips 66 earned a higher return on the capital invested in it (11.2%, against 7.2%).
- Investors pay more for each dollar of Valero Energy’s earnings: a P/E of 17.7x against 16.5x for Phillips 66.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Phillips 66
PSX
6/9
5-year growthGross marginNet marginReturn on capitalReturn on equityPiotroski F-score
Valero Energy
VLO
3/9
Revenue growthNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | PSX FY25 | VLO FY25 |
|---|---|---|
| Size | ||
| Market cap | $116.3B | $125.5B |
| Revenue | $132.4B | $122.7B |
| Free cash flow | — | — |
| Net income | $4.4B | $2.3B |
| Growth | ||
| Revenue growth | −7.5% | −5.5% |
| 5-year growth | 15.6% | 13.6% |
| Share count change | −3.3% | −4.0% |
| Profitability | ||
| Gross margin | 12.3% | 4.4% |
| Operating margin | — | 2.6% |
| Net margin | 3.3% | 1.9% |
| FCF margin | — | — |
| Return on capital | 11.2% | 7.2% |
| Return on equity | 15.6% | 9.7% |
| Balance sheet | ||
| Net debt | $18.6B | $5.9B |
| Net debt / EBITDA | 1.9x | 0.9x |
| Dividends and buybacks | $3.1B | $4.0B |
| Valuation & quality | ||
| P/E | 16.5x | 17.7x |
| Piotroski F-score | 8 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.