Marathon Oil vs Marathon Petroleum Which Offers More Value?

Both Marathon Oil and Marathon Petroleum are established players in the energy sector, but they operate in different parts of the industry. Marathon Oil is primarily focused on exploration and production of oil and natural gas, while Marathon Petroleum is involved in refining, marketing, and transportation of petroleum products. Investors interested in these stocks should consider factors such as oil prices, production levels, and market demand for refined products to make informed decisions about their investment portfolios.

Marathon Oil or Marathon Petroleum?

When comparing Marathon Oil and Marathon 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 Marathon Oil and Marathon 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. Marathon Oil has a dividend yield of 1.54%, while Marathon Petroleum has a dividend yield of 2.31%. 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, Marathon Petroleum reports a 5-year dividend growth of 10.82% year and a payout ratio of 25.92%.

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 Marathon Petroleum's P/E ratio at 10.70. 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 Marathon Petroleum's P/B ratio is 2.56.

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 Marathon Petroleum's is 1.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Marathon Oil's ROE at 11.82% and Marathon Petroleum's ROE at 20.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.43 for Marathon Oil and $146.18 for Marathon Petroleum. Over the past year, Marathon Oil's prices ranged from $21.81 to $30.06, with a yearly change of 37.83%. Marathon Petroleum's prices fluctuated between $142.84 and $221.11, with a yearly change of 54.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.