Occidental Petroleum vs Exxon Mobil

Both Occidental Petroleum and Exxon Mobil are major players in the oil and gas industry, with a significant presence in the global energy market. While both companies have faced challenges and fluctuations in stock prices due to various factors such as supply and demand dynamics, geopolitical issues, and changing market conditions, they continue to be leading choices for investors seeking exposure to the energy sector. This comparison will explore the performance, strengths, and weaknesses of Occidental Petroleum and Exxon Mobil stocks.

Occidental Petroleum or Exxon Mobil?

When comparing Occidental Petroleum 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 Occidental Petroleum 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. Occidental Petroleum has a dividend yield of 2.48%, while Exxon Mobil has a dividend yield of 3.16%. 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 29.74%. On the other hand, Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 45.65%.

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 9.97 and Exxon Mobil's P/E ratio at 15.21. 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 1.44 while Exxon Mobil's P/B ratio is 1.94.

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 Exxon Mobil's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Occidental Petroleum's ROE at 15.10% and Exxon Mobil's ROE at 15.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $51.53 for Occidental Petroleum and $119.78 for Exxon Mobil. Over the past year, Occidental Petroleum's prices ranged from $49.75 to $71.19, with a yearly change of 43.10%. 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.