Head-To-Head Review: EOG Resources (NYSE:EOG) vs. ExxonMobil (NYSE:XOM)

EOG Resources (NYSE:EOG) and ExxonMobil (NYSE:XOM) are both large-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for EOG Resources and ExxonMobil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EOG Resources	0	17	9	2	2.46
ExxonMobil	0	13	11	1	2.52

EOG Resources currently has a consensus target price of $161.24, indicating a potential downside of 1.19%. ExxonMobil has a consensus target price of $167.70, indicating a potential downside of 8.48%. Given EOG Resources’ higher possible upside, equities research analysts plainly believe EOG Resources is more favorable than ExxonMobil.

Profitability

This table compares EOG Resources and ExxonMobil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EOG Resources	25.44%	23.44%	13.58%
ExxonMobil	8.88%	13.14%	7.62%

Institutional and Insider Ownership

89.9% of EOG Resources shares are owned by institutional investors. Comparatively, 61.8% of ExxonMobil shares are owned by institutional investors. 0.1% of EOG Resources shares are owned by insiders. Comparatively, 0.0% of ExxonMobil shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 2.5%. ExxonMobil pays an annual dividend of $4.12 per share and has a dividend yield of 2.2%. EOG Resources pays out 31.8% 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. EOG Resources has increased its dividend for 8 consecutive years and ExxonMobil has increased its dividend for 42 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

EOG Resources has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, ExxonMobil has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Valuation & Earnings

This table compares EOG Resources and ExxonMobil”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EOG Resources	$26.64 billion	3.21	$4.98 billion	$12.85	12.70
ExxonMobil	$332.24 billion	2.29	$28.84 billion	$7.77	23.58

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

Summary

EOG Resources beats ExxonMobil on 12 of the 18 factors compared between the two stocks.

About EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

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.