Exxon Mobil (NYSE:XOM) and OMV (OTCMKTS:OMVKY) Critical Contrast

OMV (OTCMKTS:OMVKY) and Exxon Mobil (NYSE:XOM) are both large-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Profitability

This table compares OMV and Exxon Mobil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OMV	4.57%	8.25%	4.12%
Exxon Mobil	8.99%	11.22%	6.69%

Insider & Institutional Ownership

61.8% of Exxon Mobil shares are held by institutional investors. 0.0% of Exxon Mobil shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for OMV and Exxon Mobil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OMV	1	4	0	0	1.80
Exxon Mobil	0	13	10	1	2.50

Exxon Mobil has a consensus target price of $129.45, suggesting a potential upside of 8.70%. Given Exxon Mobil’s stronger consensus rating and higher probable upside, analysts clearly believe Exxon Mobil is more favorable than OMV.

Valuation & Earnings

This table compares OMV and Exxon Mobil”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OMV	$36.77 billion	0.49	$1.57 billion	$4.22	3.26
Exxon Mobil	$349.59 billion	1.44	$33.68 billion	$6.88	17.31

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

Dividends

OMV pays an annual dividend of $0.58 per share and has a dividend yield of 4.2%. Exxon Mobil pays an annual dividend of $4.12 per share and has a dividend yield of 3.5%. OMV pays out 13.7% of its earnings in the form of a dividend. Exxon Mobil pays out 59.9% 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. Exxon Mobil has increased its dividend for 42 consecutive years. OMV is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

OMV has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, Exxon Mobil has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.

Summary

Exxon Mobil beats OMV on 16 of the 18 factors compared between the two stocks.

About OMV

OMV Aktiengesellschaft operates as an energy and chemicals company in Austria, Germany, Romania, Norway, Belgium, New Zealand, the United Arab Emirates, the rest of Central and Eastern Europe, the rest of Europe, and internationally. It operates through three segments: Chemicals & Materials, Fuels & Feedstock, and Energy. The company engages in the exploration, development, and production of oil and gas in the regions of Central and Eastern Europe, the Middle East and Africa, the North Sea, and the Asia Pacific; and refining and marketing of fuels and feedstock, as well as supply, marketing, trading, and logistics of gas in Romania and Turkey. In addition, the company provides advanced and circular polyolefin solutions, and base chemicals, as well as engages in the recycling of plastics. It has refineries in Europe, Schwechat, and Burghausen; filling stations in eight European countries; and gas storage facilities in Austria and Germany, as well as a gas-fired power plant in Romania. The company was founded in 1956 and is headquartered in Vienna, Austria.

About Exxon Mobil

Exxon Mobil 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.