Marathon Petroleum's Beta Analysis: A Peer Comparison – Market Realist

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Marathon Petroleum’s 2Q17 Is Showing Promise PART 6 OF 12

By Michelle Rey  | May 18, 2017 1:12 pm EDT

Marathon Petroleum’s beta

In this article, we’ll compare Marathon Petroleum’s (MPC) beta with its past average and the betas of its peers. 

We’ve considered the stock’s 90-day daily beta, which depicts how much a stock varies for any given daily shift in the market for 90 days. Similarly, the stock’s beta for the last five years has been considered for its past average.

Marathon Petroleum’s Beta Analysis: A Peer Comparison

Marathon Petroleum’s 90-day daily beta stood at 1.9, higher than its five-year average of 1.7. MPC has the highest 90-day beta among its peers Tesoro (TSO), Valero Energy (VLO), and Phillips 66 (PSX). Valero has the lowest 90-day daily beta at 1.1.

Peers’ betas

TSO’s and PSX’s betas stand at 1.6 and 1.3, respectively. While TSO’s and VLO’s 90-day betas are below their five-year averages, PSX’s 90-day beta is marginally higher than its past average.

For exposure to the refining sector space, investors can consider the iShares Global Energy ETF (IXC). The ETF has ~5% exposure to the sector.

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