Chevron vs Exxon Mobil Which Is Stronger?

Chevron and Exxon Mobil are two of the largest and most well-known energy companies in the world. Both companies operate in the oil and gas industry, and their stocks are closely watched by investors. Chevron has a strong presence in upstream exploration and production, while Exxon Mobil has a more diversified portfolio that includes refining and chemicals. The performance of both stocks is influenced by a variety of factors, including oil prices, global demand for energy, and geopolitical events. Investors closely monitor these two behemoths to gauge the health of the energy sector as a whole.

Chevron or Exxon Mobil?

When comparing Chevron 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 Chevron 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. Chevron has a dividend yield of 4.24%, while Exxon Mobil has a dividend yield of 3.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Chevron reports a 5-year dividend growth of 6.16% year and a payout ratio of 70.19%. On the other hand, Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 47.99%.

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 Chevron P/E ratio at 16.61 and Exxon Mobil's P/E ratio at 14.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Chevron P/B ratio is 1.77 while Exxon Mobil's P/B ratio is 1.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Chevron has seen a 5-year revenue growth of 0.25%, while Exxon Mobil's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chevron's ROE at 10.47% and Exxon Mobil's ROE at 14.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $153.08 for Chevron and $110.25 for Exxon Mobil. Over the past year, Chevron's prices ranged from $135.37 to $167.11, with a yearly change of 23.45%. 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.