Marathon Petroleum vs Marathon Oil

Marathon Petroleum and Marathon Oil are two distinct entities within the energy sector, each with its own unique characteristics and investment opportunities. Marathon Petroleum primarily focuses on refining and marketing petroleum products, while Marathon Oil is primarily an exploration and production company. Investors looking to capitalize on the oil and gas industry may find potential in both stocks, but it is important to carefully consider the specific risks and potential returns associated with each company before making any investment decisions.

Marathon Petroleum or Marathon Oil?

When comparing Marathon Petroleum and Marathon Oil, 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 Petroleum and Marathon Oil.

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 Petroleum has a dividend yield of 2.03%, while Marathon Oil has a dividend yield of 1.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Marathon Petroleum reports a 5-year dividend growth of 10.82% year and a payout ratio of 16.66%. On the other hand, Marathon Oil reports a 5-year dividend growth of 15.44% year and a payout ratio of 16.91%.

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 Petroleum P/E ratio at 7.90 and Marathon Oil's P/E ratio at 10.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Marathon Petroleum P/B ratio is 2.66 while Marathon Oil's P/B ratio is 1.40.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Marathon Petroleum has seen a 5-year revenue growth of 1.19%, while Marathon Oil's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Marathon Petroleum's ROE at 30.40% and Marathon Oil's ROE at 13.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $162.08 for Marathon Petroleum and $27.60 for Marathon Oil. Over the past year, Marathon Petroleum's prices ranged from $140.98 to $221.11, with a yearly change of 56.84%. Marathon Oil's prices fluctuated between $21.81 and $30.06, with a yearly change of 37.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.