ExxonMobil vs. Chevron: Crude Prices Are Down, So Which Oil Stock Should You Buy?

See if XOM or CVX is the better investment and why.

Oil prices have been on the decline in October as fears of an economic slowdown sparked by a trade war between China and the U.S. have many traders running scared. Brent Crude — which had hit four-year highs near $87 a barrel earlier this month — saw prices tumble to under $80.

All told, falling oil prices are bad news for most oil companies, but which integrated major oil and gas company might be best positioned to weather this storm: ExxonMobil (XOM) or Chevron (CVX)? Here’s a closer look at each stock and what it has to offer so you can decide how to invest in oil.

ExxonMobil vs. Chevron Stock Comparison

Here’s a basic comparison of ExxonMobil and Chevron:

Share Price$81.97$118.14
Market Cap$347 billion$226.4 billion
2017 Revenue$238.9 billion$127.5 billion
2017 Profits$19.7 billion$9.2 billion
2017 Revenue Growth18.48%23.4%
2017 Profit Growth151.4%N/A
GOBankingRates’ Net Worth Evaluation$381 billion$230.4 billion
P/E Ratio16.7118.6
P/S Ratio1.321.58
Stock Gain/Loss Last Month-1.98%0.01%
Stock Gain/Loss Last Year3.06%3.8%

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Why You Might Pick ExxonMobil:

  • Although not by a large margin, ExxonMobil would appear to be the better value buy with a lower P/E ratio and P/S ratio.
  • ExxonMobil sports the higher dividend yield at 4.02 percent to Chevron’s 3.82 percent.
  • ExxonMobil’s return on equity of 11.21 percent beats Chevron’s 8.1 percent.

Why You Might Pick Chevron:

  • Chevron’s PEG ratio of just 0.26 would indicate that it’s currently trading at a solid price based on its growth rate and is about a third of the 0.75 rate for ExxonMobil.
  • Chevron edges out ExxonMobil in profit margin at 8.47 percent to its competitor’s 7.95 percent.
  • Chevron has significantly more cash on hand, holding $7.69 billion — or $4.01 per share — to just $3.43 billion — or $0.81 per share — for ExxonMobil.

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The Final Word on ExxonMobil vs. Chevron

ExxonMobil is the industry leader and one of the most valued companies in the world, and it presents a better value buy based on P/E and P/S ratios and its stronger dividend yield. However, Chevron has more assets in cash at the moment, a better value based on its growth rate and stronger profit margins.

Click through to keep reading about how much gas prices might drop thanks to Trump’s ethanol plan.

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