Exxon Mobil Corporation (XOM) vs. Arc Logistic Partners (ARCX) Financial Analysis
Exxon Mobil Corporation (NYSE: XOM) and Arc Logistic Partners (NYSE:ARCX) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Earnings & Valuation
This table compares Exxon Mobil Corporation and Arc Logistic Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Exxon Mobil Corporation||$215.29 billion||1.63||$27.62 billion||$2.77||29.82|
|Arc Logistic Partners||$105.58 million||3.10||$53.34 million||$0.71||23.58|
Exxon Mobil Corporation has higher revenue and earnings than Arc Logistic Partners. Arc Logistic Partners is trading at a lower price-to-earnings ratio than Exxon Mobil Corporation, indicating that it is currently the more affordable of the two stocks.
Exxon Mobil Corporation pays an annual dividend of $3.08 per share and has a dividend yield of 3.7%. Arc Logistic Partners pays an annual dividend of $1.76 per share and has a dividend yield of 10.5%. Exxon Mobil Corporation pays out 111.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Arc Logistic Partners pays out 247.9% 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 Corporation has increased its dividend for 2 consecutive years and Arc Logistic Partners has increased its dividend for 34 consecutive years. Arc Logistic Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
50.7% of Exxon Mobil Corporation shares are owned by institutional investors. Comparatively, 40.6% of Arc Logistic Partners shares are owned by institutional investors. 0.1% of Exxon Mobil Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Exxon Mobil Corporation has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Arc Logistic Partners has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.
This table compares Exxon Mobil Corporation and Arc Logistic Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Exxon Mobil Corporation||4.75%||7.62%||4.04%|
|Arc Logistic Partners||13.28%||4.10%||2.31%|
This is a breakdown of recent ratings and price targets for Exxon Mobil Corporation and Arc Logistic Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Exxon Mobil Corporation||6||13||8||1||2.14|
|Arc Logistic Partners||0||3||1||0||2.25|
Exxon Mobil Corporation presently has a consensus price target of $85.20, suggesting a potential upside of 3.15%. Arc Logistic Partners has a consensus price target of $18.33, suggesting a potential upside of 9.52%. Given Arc Logistic Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Arc Logistic Partners is more favorable than Exxon Mobil Corporation.
Exxon Mobil Corporation beats Arc Logistic Partners on 12 of the 18 factors compared between the two stocks.
About Exxon Mobil Corporation
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.
About Arc Logistic Partners
Arc Logistics Partners LP owns, operates, develops and acquires a portfolio of energy logistics assets. The Company is engaged in the terminaling, storage, throughput and transloading of crude oil and petroleum products. The Company is focused on growing its business through the optimization, organic development and acquisition of terminaling, storage, rail, pipeline and other energy logistics assets. As of March 6, 2017, the Company’s energy logistics assets were located in the East Coast, Gulf Coast, Midwest, Rocky Mountains and West Coast regions of the United States and supplied a group of third-party customers, including oil companies, independent refiners, crude oil and petroleum product marketers, distributors and various industrial manufacturers. As of December 31, 2016, its assets consisted of 21 terminals in 12 states; four rail transloading facilities, and the liquefied natural gas (LNG) Interest in connection with the LNG Facility.
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