EOG Resources (NYSE:EOG) versus ExxonMobil (NYSE:XOM) Critical Comparison

ExxonMobil (NYSE:XOM) and EOG Resources (NYSE:EOG) are both large-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Profitability

This table compares ExxonMobil and EOG Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ExxonMobil	8.88%	13.14%	7.62%
EOG Resources	25.44%	23.44%	13.58%

Volatility & Risk

ExxonMobil has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, EOG Resources has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Insider & Institutional Ownership

61.8% of ExxonMobil shares are held by institutional investors. Comparatively, 89.9% of EOG Resources shares are held by institutional investors. 0.0% of ExxonMobil shares are held by insiders. Comparatively, 0.1% of EOG Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for ExxonMobil and EOG Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ExxonMobil	0	13	11	1	2.52
EOG Resources	0	17	9	2	2.46

ExxonMobil presently has a consensus target price of $167.70, suggesting a potential downside of 8.48%. EOG Resources has a consensus target price of $161.24, suggesting a potential downside of 1.19%. Given EOG Resources’ higher probable upside, analysts plainly believe EOG Resources is more favorable than ExxonMobil.

Valuation and Earnings

This table compares ExxonMobil and EOG Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ExxonMobil	$332.24 billion	2.29	$28.84 billion	$7.77	23.58
EOG Resources	$26.64 billion	3.21	$4.98 billion	$12.85	12.70

ExxonMobil has higher revenue and earnings than EOG Resources. EOG Resources is trading at a lower price-to-earnings ratio than ExxonMobil, indicating that it is currently the more affordable of the two stocks.

Dividends

ExxonMobil pays an annual dividend of $4.12 per share and has a dividend yield of 2.2%. EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 2.5%. ExxonMobil pays out 53.0% of its earnings in the form of a dividend. EOG Resources pays out 31.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ExxonMobil has raised its dividend for 42 consecutive years and EOG Resources has raised its dividend for 8 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

EOG Resources beats ExxonMobil on 12 of the 18 factors compared between the two stocks.

About ExxonMobil

ExxonMobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments. The Upstream segment explores for and produces crude oil and natural gas. The Energy Products segment offers fuels, aromatics, catalysts, and licensing services. It sells its products under the Exxon, Esso, and Mobil brands. The Chemical Products segment manufactures and markets petrochemicals, including olefins, polyolefins, and intermediates. The Specialty Products segment offers performance products, including lubricants, basestocks, waxes, synthetics, elastomers, and resins. The company is also involved in the manufacturing, trade, transport, and selling crude oil, natural gas, petroleum products, petrochemicals, and other specialty products in pursuit of lower-emission business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, and lithium. Exxon Mobil Corporation was founded in 1870 and is based in Spring, Texas.

About EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.