I wrote an article not too long ago about how I believe Valero Energy (VLO) is undervalued. In that article I explained the system I use to rate a stock’s financials, dividend, and built-in margin of safety. That article can be viewed here. The article got a lot of praise and caused some intelligent discussion. As a Seeking Alpha Contributor I try to get engaged in the comment section below my articles and respond to as many comments and questions that I can, as I like building a rapport with my readers. As I was getting involved in the discussion, I noticed that a lot of readers asked me to run other oil & gas companies through my system, and compare the results against VLO. I obviously can’t do that type of financial analysis in the comment section, but it gave me the idea to write my first “Reader Request” piece.
In this Reader Request, I will compare the financials between VLO, Phillips 66 (PSX), and Enbridge (ENB) using my “10 Minute Stock Rating System”. I will discuss the results and tell you which oil & gas company I like best at current prices. This Reader Request will be a fun way for me to give back to my readers.
VLO is a petroleum refining and marketing company. The company produces conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products as well as a slate of premium products. VLO operates in the oil & gas refining & marketing industry.
PSX is an oil and gas company that purchases for resale and markets refined petroleum products. Its joint venture operates facilities in the United States and the Middle East and primarily produces olefins and polyolefins. PSX also operates in the oil & gas refining & marketing industry.
ENB serves the oil & gas industry. Its key activity involves gathering and transportation of crude oil and natural gas. ENB operates in the oil & gas midstream industry.
The following table includes all data used in the “10 Minute System” to rate…