BP vs Exxon Mobil Which Outperforms?

BP and Exxon Mobil are two of the largest and most well-known oil and gas companies in the world. Both companies have a long history of success in the industry and have been major players in the global energy market for decades. Investors often compare BP and Exxon Mobil stocks to determine which company offers a better investment opportunity. By examining factors such as financial performance, sustainability initiatives, and market trends, investors can make informed decisions about where to allocate their investment capital.

BP or Exxon Mobil?

When comparing BP and Exxon Mobil, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between BP and Exxon Mobil.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. BP has a dividend yield of 7.94%, while Exxon Mobil has a dividend yield of 3.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BP reports a 5-year dividend growth of -7.33% year and a payout ratio of 182.37%. On the other hand, Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 47.34%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with BP P/E ratio at 29.02 and Exxon Mobil's P/E ratio at 15.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BP P/B ratio is 1.21 while Exxon Mobil's P/B ratio is 1.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BP has seen a 5-year revenue growth of -0.19%, while Exxon Mobil's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BP's ROE at 3.99% and Exxon Mobil's ROE at 14.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.73 for BP and $120.08 for Exxon Mobil. Over the past year, BP's prices ranged from $28.73 to $40.40, with a yearly change of 40.60%. Exxon Mobil's prices fluctuated between $95.77 and $126.34, with a yearly change of 31.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.