Occidental Petroleum vs Chevron Which Is More Favorable?

Both Occidental Petroleum and Chevron are major players in the oil and gas industry, with extensive operations and a global reach. Occidental Petroleum has a strong focus on exploration and production, while Chevron has a diverse portfolio that includes refining, marketing, and transportation. Investors interested in these stocks should consider factors such as market performance, financial stability, and potential growth opportunities in the energy sector. Making an informed decision between Occidental Petroleum and Chevron stocks requires careful analysis and consideration of various factors.

Occidental Petroleum or Chevron?

When comparing Occidental Petroleum and Chevron, 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 Occidental Petroleum and Chevron.

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. Occidental Petroleum has a dividend yield of 1.85%, while Chevron has a dividend yield of 4.24%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Occidental Petroleum reports a 5-year dividend growth of -25.32% year and a payout ratio of 31.93%. On the other hand, Chevron reports a 5-year dividend growth of 6.16% year and a payout ratio of 70.19%.

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 Occidental Petroleum P/E ratio at 10.09 and Chevron's P/E ratio at 16.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Occidental Petroleum P/B ratio is 1.27 while Chevron's P/B ratio is 1.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Occidental Petroleum has seen a 5-year revenue growth of 0.36%, while Chevron's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Occidental Petroleum's ROE at 13.71% and Chevron's ROE at 10.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $47.43 for Occidental Petroleum and $153.08 for Chevron. Over the past year, Occidental Petroleum's prices ranged from $47.20 to $71.19, with a yearly change of 50.83%. Chevron's prices fluctuated between $135.37 and $167.11, with a yearly change of 23.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.