Better Buy: Phillips 66 vs. Chevron Corporation
While Chevron (NYSE: CVX) and Phillips 66 (NYSE: PSX) both operate in the oil industry, they have entirely different focuses. Chevron, for example, makes most of its money exploring for and producing oil. As an integrated oil company, though, it also operates refineries and chemical plants, with the latter part of a joint venture with Phillips 66. Meanwhile, Phillips 66 makes most of its money on refining, though it also operates a midstream business and that chemicals joint venture with Chevron.
This difference is important for investors to understand because the decision to buy one of these stocks over the other boils down to two factors: risk tolerance and the outlook for oil prices. For those who are bullish on oil and have a higher risk tolerance, Chevron is the better buy because it has far more upside. Phillips 66, on the other hand, offers investors a lower-risk way to invest in the oil market since it should do well even if crude falls, which for some is enough to put it over the top.
Image source: Getty Images.
Source: Fool.com
Chevron Corp. Stock
With 26 Buy predictions and not a single Sell prediction Chevron Corp. is an absolute favorite of our community.
With a target price of 179 € there is a slightly positive potential of 19.83% for Chevron Corp. compared to the current price of 149.38 €.
