Exxon Mobil vs Shell Which Is More Favorable?

Exxon Mobil and Shell are two of the largest multinational oil and gas companies in the world. Both companies have a long history of dominating the energy sector and have consistently performed well in global markets. However, in recent years, their stocks have experienced fluctuations due to various factors such as fluctuating oil prices, competition from renewable energy sources, and environmental concerns. Investors closely monitor the performance of Exxon Mobil and Shell stocks to make informed decisions about their investments in the energy sector.

Exxon Mobil or Shell?

When comparing Exxon Mobil and Shell, 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 Shell.

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 3.43%, while Shell has a dividend yield of 4.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 47.99%. On the other hand, Shell reports a 5-year dividend growth of -8.03% year and a payout ratio of 55.99%.

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 Exxon Mobil P/E ratio at 14.81 and Shell's P/E ratio at 12.80. 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 1.86 while Shell's P/B ratio is 1.07.

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 0.25%, while Shell's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Exxon Mobil's ROE at 14.23% and Shell's ROE at 8.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $110.78 for Exxon Mobil and $63.90 for Shell. Over the past year, Exxon Mobil's prices ranged from $95.77 to $126.34, with a yearly change of 31.92%. Shell's prices fluctuated between $60.34 and $74.61, with a yearly change of 23.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.