ExxonMobil (NYSE:XOM) & Toro (NASDAQ:TORO) Financial Analysis

Toro (NASDAQ:TORO) and ExxonMobil (NYSE:XOM) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Volatility and Risk

Toro has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500. Comparatively, ExxonMobil has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$21.08 million	4.43	$5.93 million	($0.11)	-39.55
ExxonMobil	$361.06 billion	2.12	$28.84 billion	$7.77	23.73

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

Analyst Recommendations

This is a summary of current ratings for Toro and ExxonMobil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	0	1	0	0	2.00
ExxonMobil	0	13	11	1	2.52

ExxonMobil has a consensus target price of $167.70, indicating a potential downside of 9.07%. Given ExxonMobil’s stronger consensus rating and higher possible upside, analysts plainly believe ExxonMobil is more favorable than Toro.

Insider & Institutional Ownership

1.7% of Toro shares are owned by institutional investors. Comparatively, 61.8% of ExxonMobil shares are owned by institutional investors. 0.0% of ExxonMobil shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Toro and ExxonMobil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toro	16.42%	2.04%	1.17%
ExxonMobil	8.88%	13.14%	7.62%

Summary

ExxonMobil beats Toro on 12 of the 15 factors compared between the two stocks.

About Toro

Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.

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.