Cvx vs exxmoblie
8/25/2024 09:25am
**Chevron (CVX) and ExxonMobil (XOM) present contrasting investment profiles**, and your decision should align with your risk tolerance, investment horizon, and the specific factors you consider important. Here's a detailed comparison:
1. **Current Valuation**:
- **Chevron**: CVX's P/E ratio is 1.7, P/S ratio is 1.37, and P/B ratio is 1.7. These ratios suggest that the stock is reasonably valued compared to its earnings, sales, and book value.
- **ExxonMobil**: XOM's P/E ratio is 14.1, P/S ratio is 1.37, and P/B ratio is 1.7. ExxonMobil's higher P/E ratio indicates that it may be overvalued compared to Chevron based on its earnings, but its P/B and P/S ratios are similar.
2. **Stock Performance**:
- **Chevron**: Chevron's stock has experienced a 1.3% increase in its closing price, reaching $147.62. The stock has shown a 1-month percentage change of -14.00% and a 52-week range of $139.62 to $171.70.
- **ExxonMobil**: ExxonMobil's stock has also increased by 1.3% to $147.62. Its 1-month percentage change is -4.68%, and its 52-week range is $139.62 to $171.70.
3. **Market Sentiment and Analyst Ratings**:
- **Chevron**: Analysts have a neutral consensus rating on CVX, with an average price target of $146. This suggests that the stock is not over or undervalued based on analysts' expectations.
- **ExxonMobil**: Analysts have a mixed sentiment, with both bullish and neutral ratings. The average price target is $123.18, indicating a lower expected valuation compared to the current price.
4. **Financial Health and Dividend Yield**:
- **Chevron**: Chevron has a lower debt-to-equity ratio compared to ExxonMobil, indicating better financial leverage. It also boasts a higher dividend yield of 4.39%.
- **ExxonMobil**: ExxonMobil has a slightly lower debt-to-equity ratio but a higher cash position, which provides more financial flexibility.
5. **Strategic Focus**:
- **Chevron**: Chevron is committing to a $1 billion innovation center in India and has secured a significant greenhouse gas assessment permit in Australia, highlighting its strategic direction towards sustainability.
- **ExxonMobil**: ExxonMobil is focusing on a $50 billion share buyback program and increasing its annual dividend payment, indicating a focus on shareholder returns and maintaining its dividend yield.
In conclusion, both companies are strong in their own right, but your choice should align with your investment goals. If you prioritize sustainability and are willing to accept a slightly lower dividend yield, Chevron might be the better choice. On the other hand, if you prefer a higher dividend yield and are comfortable with a potentially higher valuation, ExxonMobil could be more appealing. It's also important to consider your overall portfolio and the role these stocks play in your investment strategy.