- Slumping oil prices could hit oil companies hard.
- Chevron has more cash on hand to wait out reduced oil prices.
- ExxonMobil is the larger company and offers better value at its current price based on earnings and revenue.
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:
|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 Growth||18.48%||23.4%|
|2017 Profit Growth||151.4%||N/A|
|GOBankingRates’ Net Worth Evaluation||$381 billion||$230.4 billion|
|Stock Gain/Loss Last Month||-1.98%||0.01%|
|Stock Gain/Loss Last Year||3.06%||3.8%|
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.
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