Indian Oil vs Oil India Which Performs Better?

Indian Oil Corporation Limited (IOCL) and Oil India Limited (OIL) are two of the leading oil and gas companies in India. IOCL is a government-owned company engaged in refining, distribution, and marketing of petroleum products, while OIL is primarily focused on exploration and production of crude oil and natural gas. Both companies are listed on the stock exchange and offer attractive investment opportunities for those looking to capitalize on the growing energy sector in India. In this article, we will compare the stocks of Indian Oil Corporation and Oil India Limited, analyzing their financial performance, market trends, and potential for future growth.

Indian Oil or Oil India?

When comparing Indian Oil and Oil India, 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 Oil India.

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 4.93%, while Oil India has a dividend yield of 2.95%. 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, Oil India reports a 5-year dividend growth of 4.84% 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 11.44 and Oil India's P/E ratio at 9.20. 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 1.11 while Oil India's P/B ratio is 1.47.

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 Oil India's is 1.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Indian Oil's ROE at 9.69% and Oil India's ROE at 16.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹140.30 for Indian Oil and ₹473.30 for Oil India. Over the past year, Indian Oil's prices ranged from ₹116.60 to ₹196.80, with a yearly change of 68.78%. Oil India's prices fluctuated between ₹205.80 and ₹767.90, with a yearly change of 273.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.