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Phillips 66 vs Valero Energy: Which Stock Looks Stronger in 2026?

Phillips 66 holds the cleaner structural position, with valuation as the main driver and profitability adding further support. Valero Energy still has the edge on stability, which keeps the comparison from looking entirely one-sided. The market setup is broadly comparable for both — no clear directional signal from price behavior. The market is not adding a decisive signal either way — the structural read carries the weight.

The comparison is based on similar long-term financial trajectories, not sector labels.

Updated 2026-04-05

The lead is spread across valuation and profitability, rather than sitting in one isolated gap. The overall score gap is 17 points in favour of Phillips 66.

INDUSTRY COMPARISON

Both operate in: Oil & Gas Refining & Marketing

This comparison is based on industry proximity, not on functional trajectory similarity. PSX and VLO share the same industry classification.

For a similarity-based comparison, see how Phillips 66 and Valero Energy each position within their functional peer groups in AssetNext.

Peer-Relative Score
PSX
Phillips 66
62
Peer-Score
Signal qualityMedium
vs
VLO
Valero Energy Corporation
45
Peer-Score
Signal qualityMedium

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

The largest gaps do not all point in the same direction.

Dimension spread: PSX vs VLO Profitability 44 21 Stability 42 59 Valuation 82 50 Growth 80 60 PSX VLO
Gap Ranking
#1 Valuation +32
#2 Profitability +23
#3 Growth +20
#4 Stability +17
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for PSX and VLO Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer PSXVLO Relative valuation Structural strength

Phillips 66 looks stronger on relative valuation, while the broader price setup remains mixed.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Relative Position vs Comparable Companies
Valuation
Both rank well on valuation, but Phillips 66 still holds a clear edge.
Profitability
Phillips 66 holds the stronger peer position on profitability.
Valuation — Dominant Gap
PSX
82
VLO
50
Gap+32in favour of PSX

The multiple-based pricing edge comes from a forward P/E that is 4.1 turns lower.

What keeps the gap from being one-sided

Stability still leans toward Valero Energy Corporation, so the lead is real without reading as one-way.

What this means for the comparison

Valuation is the clearest driver of the lead, with profitability adding further support — though stability still provides a real counterweight.

Explore full peer positioning in AssetNext

Break down the PSX vs VLO comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Similar valuation-and-profitability comparisons

Explore how PSX and VLO each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.