Marathon Oil vs Exxon Mobil Which Is a Smarter Choice?

Marathon Oil and Exxon Mobil are two of the biggest players in the oil and gas industry, with both companies being heavily involved in exploration, production, and refining operations. When it comes to their stocks, investors often compare the two to determine which may offer the better investment opportunities. While both companies have faced challenges in recent years due to fluctuations in oil prices and the shift towards renewable energy sources, they each have their own strengths and weaknesses that can impact their stock performance. Let's take a closer look at how Marathon Oil and Exxon Mobil stocks stack up against each other.

Marathon Oil or Exxon Mobil?

When comparing Marathon Oil and Exxon Mobil, 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 Marathon Oil and Exxon Mobil.

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. Marathon Oil has a dividend yield of 1.54%, while Exxon Mobil has a dividend yield of 3.43%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Marathon Oil reports a 5-year dividend growth of 15.44% year and a payout ratio of 19.02%. On the other hand, Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 47.99%.

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 Marathon Oil P/E ratio at 12.09 and Exxon Mobil's P/E ratio at 14.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Marathon Oil P/B ratio is 1.41 while Exxon Mobil's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Marathon Oil has seen a 5-year revenue growth of 0.51%, while Exxon Mobil's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Marathon Oil's ROE at 11.82% and Exxon Mobil's ROE at 14.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.43 for Marathon Oil and $110.78 for Exxon Mobil. Over the past year, Marathon Oil's prices ranged from $21.81 to $30.06, with a yearly change of 37.83%. Exxon Mobil's prices fluctuated between $95.77 and $126.34, with a yearly change of 31.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.