Exxon Mobil vs BP Which Is More Attractive?

Exxon Mobil and BP are two of the largest and most influential oil and gas companies operating on a global scale. Both companies have faced various challenges in recent years, including fluctuating oil prices, regulatory issues, and the transition to cleaner energy sources. Investors closely monitor the performance of Exxon Mobil and BP stocks, as they are considered bellwethers for the energy sector. Understanding the differences and similarities between these two companies can provide valuable insights for investors looking to navigate the complex world of energy investments.

Exxon Mobil or BP?

When comparing Exxon Mobil and BP, 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 Exxon Mobil and BP.

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. Exxon Mobil has a dividend yield of 3.68%, while BP has a dividend yield of 5.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Exxon Mobil reports a 5-year dividend growth of 2.28% year and a payout ratio of 49.60%. On the other hand, BP reports a 5-year dividend growth of -5.82% year and a payout ratio of 1313.12%.

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 Exxon Mobil P/E ratio at 13.97 and BP's P/E ratio at 36.92. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Exxon Mobil P/B ratio is 1.74 while BP's P/B ratio is 0.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Exxon Mobil has seen a 5-year revenue growth of 0.34%, while BP's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Exxon Mobil's ROE at 13.30% and BP's ROE at 0.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $103.67 for Exxon Mobil and $31.27 for BP. Over the past year, Exxon Mobil's prices ranged from $103.67 to $126.34, with a yearly change of 21.87%. BP's prices fluctuated between $27.82 and $40.40, with a yearly change of 45.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.