Shell vs Exxon Mobil Which Is More Lucrative?

Shell and Exxon Mobil are two of the largest and most well-known oil and gas companies in the world. Both companies have a long history of success and profitability, making them attractive investments for many shareholders. However, in recent years, the two companies have faced different challenges and opportunities that have affected their stock performance. Understanding the differences between Shell and Exxon Mobil stocks can help investors make informed decisions about where to put their money in the ever-changing energy sector.

Shell or Exxon Mobil?

When comparing Shell 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 Shell 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. Shell has a dividend yield of 4.16%, 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. Shell reports a 5-year dividend growth of -8.03% year and a payout ratio of 55.99%. On the other hand, Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 47.34%.

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 Shell P/E ratio at 13.12 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. Shell P/B ratio is 1.09 while Exxon Mobil's P/B ratio is 1.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Shell has seen a 5-year revenue growth of -0.04%, while Exxon Mobil's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shell's ROE at 8.38% and Exxon Mobil's ROE at 14.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $64.95 for Shell and $119.84 for Exxon Mobil. Over the past year, Shell's prices ranged from $60.34 to $74.61, with a yearly change of 23.65%. 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.