China Petroleum & Chemical (NYSE:SNP) and Exxon Mobil (NYSE:XOM) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.
Earnings and Valuation
This table compares China Petroleum & Chemical and Exxon Mobil's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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China Petroleum & Chemical | $421.14 billion | 0.15 | $8.32 billion | $6.37 | 8.20 |
Exxon Mobil | $264.94 billion | 0.89 | $14.34 billion | $2.25 | 24.64 |
Exxon Mobil has lower revenue, but higher earnings than China Petroleum & Chemical. China Petroleum & Chemical is trading at a lower price-to-earnings ratio than Exxon Mobil, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares China Petroleum & Chemical and Exxon Mobil's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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China Petroleum & Chemical | 1.65% | 4.11% | 1.96% |
Exxon Mobil | 3.24% | 2.09% | 1.12% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for China Petroleum & Chemical and Exxon Mobil, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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China Petroleum & Chemical | 1 | 0 | 1 | 0 | 2.00 |
Exxon Mobil | 3 | 13 | 8 | 0 | 2.21 |
Exxon Mobil has a consensus target price of $53.3462, suggesting a potential downside of 3.83%. Given Exxon Mobil's stronger consensus rating and higher possible upside, analysts plainly believe Exxon Mobil is more favorable than China Petroleum & Chemical.
Institutional & Insider Ownership
0.8% of China Petroleum & Chemical shares are owned by institutional investors. Comparatively, 50.9% of Exxon Mobil shares are owned by institutional investors. 92.2% of China Petroleum & Chemical shares are owned by insiders. Comparatively, 0.1% of Exxon Mobil 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.
Dividends
China Petroleum & Chemical pays an annual dividend of $3.30 per share and has a dividend yield of 6.3%. Exxon Mobil pays an annual dividend of $3.48 per share and has a dividend yield of 6.3%. China Petroleum & Chemical pays out 51.8% of its earnings in the form of a dividend. Exxon Mobil pays out 154.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exxon Mobil has increased its dividend for 1 consecutive years. China Petroleum & Chemical is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
China Petroleum & Chemical has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Exxon Mobil has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Summary
Exxon Mobil beats China Petroleum & Chemical on 10 of the 17 factors compared between the two stocks.