Indian Oil vs Bharat Petroleum Which Is More Reliable?

Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL) are two of the largest oil and gas companies in India. Both companies are major players in the refining and marketing of petroleum products in the country. The stocks of these companies are closely watched by investors, as they are considered to be bellwethers of the Indian economy. The performance of these stocks is influenced by various factors such as global oil prices, government policies, and demand for petroleum products in the domestic market. Investors analyze the financial performance, growth prospects, and market position of these companies before making investment decisions.

Indian Oil or Bharat Petroleum?

When comparing Indian Oil and Bharat 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 Indian Oil and Bharat 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. Indian Oil has a dividend yield of 4.95%, while Bharat Petroleum has a dividend yield of 3.48%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Indian Oil reports a 5-year dividend growth of -22.02% year and a payout ratio of 0.00%. On the other hand, Bharat Petroleum reports a 5-year dividend growth of 3.55% year and a payout ratio of 0.00%.

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 Indian Oil P/E ratio at 11.40 and Bharat Petroleum's P/E ratio at 9.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Indian Oil P/B ratio is 1.10 while Bharat Petroleum's P/B ratio is 1.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Indian Oil has seen a 5-year revenue growth of 0.49%, while Bharat Petroleum's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Indian Oil's ROE at 9.69% and Bharat Petroleum's ROE at 17.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹140.87 for Indian Oil and ₹301.30 for Bharat Petroleum. Over the past year, Indian Oil's prices ranged from ₹117.35 to ₹196.80, with a yearly change of 67.70%. Bharat Petroleum's prices fluctuated between ₹216.22 and ₹376.00, with a yearly change of 73.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.