Oil India vs Indian Oil Which Performs Better?

Oil India Limited (OIL) and Indian Oil Corporation Limited (Indian Oil) are two prominent energy companies in India that are engaged in the exploration, production, and distribution of oil and gas products. While both companies are listed on the stock exchange, there are significant differences between them in terms of their business operations and financial performance. Investors looking to diversify their portfolio in the energy sector may consider analyzing the stocks of Oil India and Indian Oil to make informed investment decisions.

Oil India or Indian Oil?

When comparing Oil India and Indian 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 Oil India and Indian 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. Oil India has a dividend yield of 3.0%, while Indian Oil has a dividend yield of 4.95%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Oil India reports a 5-year dividend growth of 4.84% year and a payout ratio of 0.00%. On the other hand, Indian Oil reports a 5-year dividend growth of -22.02% year and a payout ratio of 0.00%.

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 Oil India P/E ratio at 9.04 and Indian Oil's P/E ratio at 11.40. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Oil India P/B ratio is 1.44 while Indian Oil's P/B ratio is 1.10.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Oil India has seen a 5-year revenue growth of 1.53%, while Indian Oil's is 0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oil India's ROE at 16.99% and Indian Oil's ROE at 9.69%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹465.75 for Oil India and ₹140.87 for Indian Oil. Over the past year, Oil India's prices ranged from ₹208.23 to ₹767.90, with a yearly change of 268.77%. Indian Oil's prices fluctuated between ₹117.35 and ₹196.80, with a yearly change of 67.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.