Phillips 66 (NYSE:PSX) versus Transportadora De Gas Sa Ord B (NYSE:TGS) Head-To-Head Comparison

Phillips 66 (NYSE:PSX) and Transportadora De Gas Sa Ord B (NYSE:TGS) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Risk and Volatility

Phillips 66 has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Transportadora De Gas Sa Ord B has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Insider and Institutional Ownership

76.9% of Phillips 66 shares are owned by institutional investors. Comparatively, 3.3% of Transportadora De Gas Sa Ord B shares are owned by institutional investors. 0.4% of Phillips 66 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Phillips 66 and Transportadora De Gas Sa Ord B, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phillips 66	0	6	13	2	2.81
Transportadora De Gas Sa Ord B	0	2	1	0	2.33

Phillips 66 currently has a consensus target price of $231.76, indicating a potential downside of 12.41%. Transportadora De Gas Sa Ord B has a consensus target price of $39.00, indicating a potential upside of 34.16%. Given Transportadora De Gas Sa Ord B’s higher possible upside, analysts clearly believe Transportadora De Gas Sa Ord B is more favorable than Phillips 66.

Profitability

This table compares Phillips 66 and Transportadora De Gas Sa Ord B’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phillips 66	4.54%	19.93%	7.62%
Transportadora De Gas Sa Ord B	27.38%	16.29%	10.07%

Valuation & Earnings

This table compares Phillips 66 and Transportadora De Gas Sa Ord B”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phillips 66	$136.56 billion	0.77	$4.40 billion	$17.55	15.08
Transportadora De Gas Sa Ord B	$1.41 billion	3.11	$336.69 million	$2.61	11.14

Phillips 66 has higher revenue and earnings than Transportadora De Gas Sa Ord B. Transportadora De Gas Sa Ord B is trading at a lower price-to-earnings ratio than Phillips 66, indicating that it is currently the more affordable of the two stocks.

Summary

Phillips 66 beats Transportadora De Gas Sa Ord B on 11 of the 15 factors compared between the two stocks.

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.

About Transportadora De Gas Sa Ord B

Transportadora de Gas del Sur S.A. engages in transportation of natural gas, and production and commercialization of natural gas liquids in Argentina and internationally. The company operates through four segments: Natural Gas Transportation Services; Liquids Production and Commercialization; Midstream; and Telecommunications. The Natural Gas Transportation segment transports natural gas through pipeline system to distribution companies, power plants, and industrial customers. It provides operation and maintenance services for the natural gas transportation facilities. The Liquids Production and Commercialization segment produces and commercializes natural gas liquids, such as ethane, liquid petroleum gas, natural gasoline, propane, and butane. This segment offers certain related services comprising reception, storage, and dispatch of the liquids. The Midstream segment provides natural gas conditioning services; treatment, removal of impurities and natural gas compression, including the collection and transport of natural gas; and inspection and maintenance of pipelines and compressor plants services. In addition, this segment offers steam generation for electricity production and management services for expansion works and steam generation for the production of electricity. The Telecommunications segment offers data transmission services through a network of digital terrestrial radio relay. It serves residential, commercial, industrial, and electric power generation end users. The company was incorporated in 1992 and is headquartered in Buenos Aires, Argentina. Transportadora de Gas del Sur S.A. is a subsidiary of Compañía de Inversiones de Energía S.A.