Reviewing ExxonMobil (NYSE:XOM) and World Kinect (NYSE:WKC)

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

Risk & Volatility

World Kinect has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, ExxonMobil has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Insider and Institutional Ownership

97.1% of World Kinect shares are held by institutional investors. Comparatively, 61.8% of ExxonMobil shares are held by institutional investors. 3.8% of World Kinect shares are held by company insiders. Comparatively, 0.0% of ExxonMobil shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares World Kinect and ExxonMobil”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
World Kinect	$36.92 billion	0.05	-$614.40 million	($3.21)	-11.08
ExxonMobil	$332.24 billion	2.05	$28.84 billion	$7.77	21.16

ExxonMobil has higher revenue and earnings than World Kinect. World Kinect 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 breakdown of recent ratings and recommmendations for World Kinect and ExxonMobil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Kinect	2	0	0	1	2.00
ExxonMobil	0	12	10	0	2.45

World Kinect currently has a consensus target price of $30.00, indicating a potential downside of 15.64%. ExxonMobil has a consensus target price of $167.45, indicating a potential upside of 1.84%. Given ExxonMobil’s stronger consensus rating and higher possible upside, analysts plainly believe ExxonMobil is more favorable than World Kinect.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
World Kinect	-0.43%	11.24%	2.40%
ExxonMobil	8.88%	13.14%	7.62%

Dividends

World Kinect pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. ExxonMobil pays an annual dividend of $4.12 per share and has a dividend yield of 2.5%. World Kinect pays out -28.7% of its earnings in the form of a dividend. ExxonMobil pays out 53.0% 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. World Kinect has increased its dividend for 6 consecutive years and ExxonMobil has increased its dividend for 42 consecutive years. World Kinect is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

ExxonMobil beats World Kinect on 12 of the 18 factors compared between the two stocks.

About World Kinect

World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform. The Land segment offers fuel, lubricants, heating oil, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also provides sustainability solutions, such as renewable fuel products, carbon management, and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; distributes heating oil and unbranded fuel; and transportation logistics. The Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. This segment also offers marine fuel-related services include management services to procurement of fuel, price risk management, cost control, quality control, and claims management services; and engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.

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.