Oil & Gas Refining & Marketing
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MPC vs VLO
Revenue, margins, valuation, and 5-year total return — side by side.
Oil & Gas Refining & Marketing
MPC vs VLO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Oil & Gas Refining & Marketing | Oil & Gas Refining & Marketing |
| Market Cap | $72.38B | $70.78B |
| Revenue (TTM) | $135.75B | $126.17B |
| Net Income (TTM) | $4.63B | $4.21B |
| Gross Margin | 8.8% | 7.2% |
| Operating Margin | 5.0% | 4.6% |
| Forward P/E | 11.1x | 10.0x |
| Total Debt | $34.36B | $11.70B |
| Cash & Equiv. | $3.67B | $4.69B |
MPC vs VLO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Marathon Petroleum … (MPC) | 100 | 699.4 | +599.4% |
| Valero Energy Corpo… (VLO) | 100 | 355.2 | +255.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: MPC vs VLO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
MPC is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth -4.4%, EPS growth 31.5%, 3Y rev CAGR -9.2%
- 6.5% 10Y total return vs VLO's 394.8%
- -4.4% revenue growth vs VLO's -5.5%
VLO carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 15 yrs, beta 0.27, yield 1.9%
- Lower volatility, beta 0.27, Low D/E 44.0%, current ratio 1.65x
- Beta 0.27, yield 1.9%, current ratio 1.65x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | -4.4% revenue growth vs VLO's -5.5% | |
| Value | Lower P/E (10.0x vs 11.1x) | |
| Quality / Margins | 3.4% margin vs VLO's 3.3% | |
| Stability / Safety | Beta 0.27 vs MPC's 0.30, lower leverage | |
| Dividends | 1.9% yield, 15-year raise streak, vs MPC's 1.5% | |
| Momentum (1Y) | +106.2% vs MPC's +72.7% | |
| Efficiency (ROA) | 7.1% ROA vs MPC's 5.5%, ROIC 9.5% vs 8.3% |
MPC vs VLO — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
MPC vs VLO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
MPC leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MPC and VLO operate at a comparable scale, with $135.8B and $126.2B in trailing revenue. Profitability is closely matched — net margins range from 3.4% (MPC) to 3.3% (VLO).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $135.8B | $126.2B |
| EBITDAEarnings before interest/tax | $10.1B | $9.0B |
| Net IncomeAfter-tax profit | $4.6B | $4.2B |
| Free Cash FlowCash after capex | $5.7B | $5.9B |
| Gross MarginGross profit ÷ Revenue | +8.8% | +7.2% |
| Operating MarginEBIT ÷ Revenue | +5.0% | +4.6% |
| Net MarginNet income ÷ Revenue | +3.4% | +3.3% |
| FCF MarginFCF ÷ Revenue | +4.2% | +4.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.7% | +7.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +8.2% | +3.2% |
Valuation Metrics
VLO leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 18.5x trailing earnings, MPC trades at a 41% valuation discount to VLO's 31.3x P/E. On an enterprise value basis, VLO's 10.4x EV/EBITDA is more attractive than MPC's 11.4x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $72.4B | $70.8B |
| Enterprise ValueMkt cap + debt − cash | $103.1B | $77.8B |
| Trailing P/EPrice ÷ TTM EPS | 18.52x | 31.27x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.07x | 10.04x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 11.43x | 10.41x |
| Price / SalesMarket cap ÷ Revenue | 0.55x | 0.58x |
| Price / BookPrice ÷ Book value/share | 3.11x | 2.75x |
| Price / FCFMarket cap ÷ FCF | 15.18x | 14.07x |
Profitability & Efficiency
VLO leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
MPC delivers a 19.6% return on equity — every $100 of shareholder capital generates $20 in annual profit, vs $16 for VLO. VLO carries lower financial leverage with a 0.44x debt-to-equity ratio, signaling a more conservative balance sheet compared to MPC's 1.43x. On the Piotroski fundamental quality scale (0–9), MPC scores 7/9 vs VLO's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +19.6% | +15.7% |
| ROA (TTM)Return on assets | +5.5% | +7.1% |
| ROICReturn on invested capital | +8.3% | +9.5% |
| ROCEReturn on capital employed | +9.3% | +9.7% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 1.43x | 0.44x |
| Net DebtTotal debt minus cash | $30.7B | $7.0B |
| Cash & Equiv.Liquid assets | $3.7B | $4.7B |
| Total DebtShort + long-term debt | $34.4B | $11.7B |
| Interest CoverageEBIT ÷ Interest expense | 6.36x | 10.63x |
Total Returns (Dividends Reinvested)
MPC leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in MPC five years ago would be worth $43,929 today (with dividends reinvested), compared to $32,020 for VLO. Over the past 12 months, VLO leads with a +106.2% total return vs MPC's +72.7%. The 3-year compound annual growth rate (CAGR) favors MPC at 33.1% vs VLO's 32.5% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +49.4% | +43.9% |
| 1-Year ReturnPast 12 months | +72.7% | +106.2% |
| 3-Year ReturnCumulative with dividends | +135.7% | +132.6% |
| 5-Year ReturnCumulative with dividends | +339.3% | +220.2% |
| 10-Year ReturnCumulative with dividends | +654.2% | +394.8% |
| CAGR (3Y)Annualised 3-year return | +33.1% | +32.5% |
Risk & Volatility
Evenly matched — MPC and VLO each lead in 1 of 2 comparable metrics.
Risk & Volatility
VLO is the less volatile stock with a 0.27 beta — it tends to amplify market swings less than MPC's 0.30 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.30x | 0.27x |
| 52-Week HighHighest price in past year | $261.61 | $258.43 |
| 52-Week LowLowest price in past year | $141.91 | $115.65 |
| % of 52W HighCurrent price vs 52-week peak | +93.9% | +91.6% |
| RSI (14)Momentum oscillator 0–100 | 72.0 | 61.5 |
| Avg Volume (50D)Average daily shares traded | 2.5M | 3.8M |
Analyst Outlook
VLO leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates MPC as "Buy" and VLO as "Buy". Consensus price targets imply -9.3% upside for VLO (target: $215) vs -12.6% for MPC (target: $215). For income investors, VLO offers the higher dividend yield at 1.92% vs MPC's 1.52%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $214.78 | $214.67 |
| # AnalystsCovering analysts | 33 | 37 |
| Dividend YieldAnnual dividend ÷ price | +1.5% | +1.9% |
| Dividend StreakConsecutive years of raises | 4 | 15 |
| Dividend / ShareAnnual DPS | $3.74 | $4.55 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.8% | +3.7% |
VLO leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). MPC leads in 2 (Income & Cash Flow, Total Returns). 1 tied.
MPC vs VLO: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is MPC or VLO a better buy right now?
For growth investors, Marathon Petroleum Corporation (MPC) is the stronger pick with -4.
4% revenue growth year-over-year, versus -5. 5% for Valero Energy Corporation (VLO). Marathon Petroleum Corporation (MPC) offers the better valuation at 18. 5x trailing P/E (11. 1x forward), making it the more compelling value choice. Analysts rate Marathon Petroleum Corporation (MPC) a "Buy" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — MPC or VLO?
On trailing P/E, Marathon Petroleum Corporation (MPC) is the cheapest at 18.
5x versus Valero Energy Corporation at 31. 3x. On forward P/E, Valero Energy Corporation is actually cheaper at 10. 0x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — MPC or VLO?
Over the past 5 years, Marathon Petroleum Corporation (MPC) delivered a total return of +339.
3%, compared to +220. 2% for Valero Energy Corporation (VLO). Over 10 years, the gap is even starker: MPC returned +654. 2% versus VLO's +394. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — MPC or VLO?
By beta (market sensitivity over 5 years), Valero Energy Corporation (VLO) is the lower-risk stock at 0.
27β versus Marathon Petroleum Corporation's 0. 30β — meaning MPC is approximately 12% more volatile than VLO relative to the S&P 500. On balance sheet safety, Valero Energy Corporation (VLO) carries a lower debt/equity ratio of 44% versus 143% for Marathon Petroleum Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — MPC or VLO?
By revenue growth (latest reported year), Marathon Petroleum Corporation (MPC) is pulling ahead at -4.
4% versus -5. 5% for Valero Energy Corporation (VLO). On earnings-per-share growth, the picture is similar: Marathon Petroleum Corporation grew EPS 31. 5% year-over-year, compared to -11. 8% for Valero Energy Corporation. Over a 3-year CAGR, MPC leads at -9. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — MPC or VLO?
Marathon Petroleum Corporation (MPC) is the more profitable company, earning 3.
0% net margin versus 1. 9% for Valero Energy Corporation — meaning it keeps 3. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MPC leads at 4. 3% versus 3. 5% for VLO. At the gross margin level — before operating expenses — MPC leads at 7. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is MPC or VLO more undervalued right now?
On forward earnings alone, Valero Energy Corporation (VLO) trades at 10.
0x forward P/E versus 11. 1x for Marathon Petroleum Corporation — 1. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for VLO: -9. 3% to $214. 67.
08Which pays a better dividend — MPC or VLO?
All stocks in this comparison pay dividends.
Valero Energy Corporation (VLO) offers the highest yield at 1. 9%, versus 1. 5% for Marathon Petroleum Corporation (MPC).
09Is MPC or VLO better for a retirement portfolio?
For long-horizon retirement investors, Marathon Petroleum Corporation (MPC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
30), 1. 5% yield, +654. 2% 10Y return). Both have compounded well over 10 years (MPC: +654. 2%, VLO: +394. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between MPC and VLO?
Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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