Chevron vs Marathon Petroleum Which Performs Better?

Chevron and Marathon Petroleum are both major players in the oil and gas industry, but they have distinct differences in their stock performances. Chevron is known for its consistent earnings and dividend payments, making it a popular choice among investors seeking stability. On the other hand, Marathon Petroleum has been more volatile, with its stock price fluctuating based on market conditions and company performance. Both stocks have their strengths and weaknesses, offering investors different opportunities for potential growth and returns.

Chevron or Marathon Petroleum?

When comparing Chevron and Marathon Petroleum, 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 Marathon Petroleum.

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 4.09%, while Marathon Petroleum has a dividend yield of 2.11%. 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 69.91%. On the other hand, Marathon Petroleum reports a 5-year dividend growth of 10.82% year and a payout ratio of 25.92%.

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 17.03 and Marathon Petroleum's P/E ratio at 11.42. 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 1.83 while Marathon Petroleum's P/B ratio is 2.73.

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 0.26%, while Marathon Petroleum's is 1.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chevron's ROE at 10.52% and Marathon Petroleum's ROE at 20.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $155.91 for Chevron and $152.65 for Marathon Petroleum. Over the past year, Chevron's prices ranged from $135.37 to $167.11, with a yearly change of 23.45%. Marathon Petroleum's prices fluctuated between $140.98 and $221.11, with a yearly change of 56.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.