Financial Comparison: Marathon Petroleum Corporation (MPC) and Its Competitors

Marathon Petroleum Corporation (NYSE: MPC) is one of 39 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it weigh in compared to its competitors? We will compare Marathon Petroleum Corporation to similar companies based on the strength of its profitability, analyst recommendations, risk, dividends, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

78.9% of Marathon Petroleum Corporation shares are held by institutional investors. Comparatively, 47.5% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 1.1% of Marathon Petroleum Corporation shares are held by insiders. Comparatively, 11.9% of shares of all “Oil & Gas Refining and Marketing” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Marathon Petroleum Corporation pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Marathon Petroleum Corporation pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.1% and pay out 638.5% of their earnings in the form of a dividend. Marathon Petroleum Corporation has increased its dividend for 6 consecutive years.

Profitability

This table compares Marathon Petroleum Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marathon Petroleum Corporation 1.34% 5.52% 2.45%
Marathon Petroleum Corporation Competitors -0.94% 2.37% 1.45%

Volatility & Risk

Marathon Petroleum Corporation has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Marathon Petroleum Corporation’s competitors have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Valuation and Earnings

This table compares Marathon Petroleum Corporation and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Marathon Petroleum Corporation $60.96 billion $4.41 billion 30.55
Marathon Petroleum Corporation Competitors $44.24 billion $4.32 billion 21.66

Marathon Petroleum Corporation has higher revenue and earnings than its competitors. Marathon Petroleum Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Marathon Petroleum Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marathon Petroleum Corporation 0 4 10 1 2.80
Marathon Petroleum Corporation Competitors 445 1943 2263 133 2.44

Marathon Petroleum Corporation presently has a consensus target price of $59.43, indicating a potential upside of 10.52%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 17.21%. Given Marathon Petroleum Corporation’s competitors higher probable upside, analysts plainly believe Marathon Petroleum Corporation has less favorable growth aspects than its competitors.

Summary

Marathon Petroleum Corporation beats its competitors on 12 of the 15 factors compared.

Marathon Petroleum Corporation Company Profile

Marathon Petroleum Corporation is engaged in refining, marketing, retail and transportation businesses in the United States and the largest east of the Mississippi. The Company operates through three segments: Refining & Marketing; Speedway; and Midstream. The Refining & Marketing segment refines crude oil and other feedstocks at the Company’s seven refineries in the Gulf Coast and Midwest regions of the United States. Its Speedway segment sells transportation fuels and convenience products in the retail market in the Midwest, East Coast and Southeast regions of the United States. The Company’s Midstream is engaged in the operations of MPLX LP and certain other related operations. It gathers, processes and transports natural gas, natural gas liquids (NGLs), crude oil and refined products. MPLX is a limited partnership which owns, operates, develops and acquires midstream energy infrastructure assets.

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