Critical Review: ExxonMobil (XOM) & YPF (YPF)
ExxonMobil (NYSE: XOM) and YPF (NYSE:YPF) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
This table compares ExxonMobil and YPF’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for ExxonMobil and YPF, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ExxonMobil currently has a consensus target price of $86.60, suggesting a potential upside of 17.82%. YPF has a consensus target price of $29.33, suggesting a potential upside of 37.91%. Given YPF’s stronger consensus rating and higher probable upside, analysts plainly believe YPF is more favorable than ExxonMobil.
ExxonMobil pays an annual dividend of $3.08 per share and has a dividend yield of 4.2%. YPF pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. ExxonMobil pays out 66.5% of its earnings in the form of a dividend. YPF pays out 31.3% 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 increased its dividend for 35 consecutive years. ExxonMobil is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
ExxonMobil has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, YPF has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500.
Earnings and Valuation
This table compares ExxonMobil and YPF’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ExxonMobil||$244.36 billion||1.27||$19.71 billion||$4.63||15.87|
|YPF||$15.27 billion||0.55||$745.33 million||$0.32||66.47|
ExxonMobil has higher revenue and earnings than YPF. ExxonMobil is trading at a lower price-to-earnings ratio than YPF, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
53.1% of ExxonMobil shares are owned by institutional investors. Comparatively, 26.5% of YPF shares are owned by institutional investors. 0.1% of ExxonMobil shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
ExxonMobil beats YPF on 12 of the 18 factors compared between the two stocks.
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/Other Americas, Europe, Africa, Asia, and Australia/Oceania. It operates through Upstream, Downstream, and Chemical segments. The company also manufactures petroleum products; manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as various specialty products; and transports and sells crude oil, natural gas, and petroleum products. As of December 31, 2017, it had approximately 25,827 net operated wells with proved reserves of 21.2 billion oil-equivalent barrels. The company has collaboration agreements with MagnaBond, LLC to develop technologies that enhances evaluation of well cementing, casing, and tubing. Exxon Mobil Corporation was founded in 1870 and is headquartered in Irving, Texas.
YPF Sociedad Anonima (YPF) is an energy company. The Company is operating a fully integrated oil and gas chain. The Company operates through the segments, including Exploration and Production, Downstream, and Corporate and Other. The Company’s Exploration and Production segment includes exploration and production activities, natural gas and crude oil purchases, sales of natural gas, and to a lesser extent crude oil, to third parties and intersegment sales of crude oil, natural gas and its byproducts. The Company’s Downstream segment is engaged in the refining, transport, purchase of crude oil and natural gas from third parties and intersegment sales, and marketing of crude oil, natural gas, refined products, petrochemicals, electric power generation and natural gas distribution. The Company’s Corporate and Other segment carries out other activities.
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