Exxon Mobil (NYSE: XOM) and Hess (NYSE:HES) are both large-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Exxon Mobil pays an annual dividend of $3.08 per share and has a dividend yield of 4.1%. Hess pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Exxon Mobil pays out 95.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hess pays out -7.6% of its earnings in the form of a dividend. Hess has raised its dividend for 35 consecutive years.
This is a summary of current recommendations and price targets for Exxon Mobil and Hess, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Exxon Mobil currently has a consensus price target of $86.00, indicating a potential upside of 15.53%. Hess has a consensus price target of $52.24, indicating a potential upside of 7.12%. Given Exxon Mobil’s higher probable upside, analysts plainly believe Exxon Mobil is more favorable than Hess.
This table compares Exxon Mobil and Hess’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Exxon Mobil has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Hess has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Earnings & Valuation
This table compares Exxon Mobil and Hess’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Exxon Mobil||$244.36 billion||1.29||$19.71 billion||$3.23||23.05|
|Hess||$5.41 billion||2.84||-$4.07 billion||($13.12)||-3.72|
Exxon Mobil has higher revenue and earnings than Hess. Hess is trading at a lower price-to-earnings ratio than Exxon Mobil, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
53.2% of Exxon Mobil shares are owned by institutional investors. Comparatively, 92.4% of Hess shares are owned by institutional investors. 0.1% of Exxon Mobil shares are owned by company insiders. Comparatively, 11.8% of Hess shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Exxon Mobil beats Hess on 10 of the 18 factors compared between the two stocks.
About Exxon Mobil
Exxon Mobil Corporation is engaged in energy business. The Company is engaged in the exploration, production, transportation and sale of crude oil and natural gas, and the manufacture, transportation and sale of petroleum products. The Company also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a range of specialty products. The Company’s segments include Upstream, Downstream, Chemical, and Corporate and Financing. The Upstream segment operates to explore for and produce crude oil and natural gas. The Downstream operates to manufacture and sell petroleum products. The Chemical segment operates to manufacture and sell petrochemicals. The Company has exploration and development activities in projects located in the United States, Canada/South America, Europe, Africa, Asia and Australia/Oceania.
Hess Corporation is an exploration and production company. The Company is engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids (NGL) and natural gas. The Company’s segments include Exploration and Production, and Bakken Midstream. Its Exploration and Production segment explores for, develops, produces, purchases and sells crude oil, NGLs and natural gas with production operations primarily in the United States, Denmark, the Malaysia/Thailand Joint Development Area (JDA), Malaysia and Norway. The Bakken Midstream segment provides fee-based services, including crude oil and natural gas gathering, processing of natural gas and the fractionation of NGLs, transportation of crude oil by rail car, terminaling and loading crude oil and NGLs, and the storage and terminaling of propane, primarily in the Bakken shale play of North Dakota.
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