ExxonMobil vs. Chevron: Better Buy?

ExxonMobil and Chevron are two of the largest oil and gas companies in the world. Both companies have a long history of success and have been around for over 100 years. However, when it comes to investing, which company is the better buy?

ExxonMobil is the larger of the two companies, with a market capitalization of over $200 billion. The company has a strong presence in the upstream, midstream, and downstream sectors of the oil and gas industry. ExxonMobil has a diverse portfolio of assets, including oil and gas reserves, refineries, and chemical plants. The company also has a strong balance sheet, with a debt-to-equity ratio of just 0.17.

Chevron, on the other hand, has a market capitalization of around $170 billion. The company is also involved in the upstream, midstream, and downstream sectors of the oil and gas industry. Chevron has a strong presence in the United States, as well as in other parts of the world, including Africa, Asia, and Australia. The company has a diverse portfolio of assets, including oil and gas reserves, refineries, and chemical plants. Chevron also has a strong balance sheet, with a debt-to-equity ratio of just 0.18.

When it comes to financial performance, both companies have been impacted by the COVID-19 pandemic and the resulting decline in oil prices. However, ExxonMobil has been hit harder than Chevron. In the second quarter of 2020, ExxonMobil reported a loss of $1.1 billion, while Chevron reported a loss of $8.3 billion. ExxonMobil has also been struggling with declining production levels, while Chevron has been able to maintain its production levels.

In terms of dividend yield, both companies offer attractive yields. ExxonMobil currently has a dividend yield of around 8%, while Chevron has a dividend yield of around 6%. However, ExxonMobil has a longer history of increasing its dividend, with over 30 years of consecutive dividend increases. Chevron has a shorter history of increasing its dividend, with around 10 years of consecutive dividend increases.

So, which company is the better buy? It ultimately depends on your investment goals and risk tolerance. If you are looking for a larger, more diversified company with a longer history of increasing its dividend, ExxonMobil may be the better choice. However, if you are willing to take on slightly more risk for a higher potential return, Chevron may be the better choice. Both companies have strong balance sheets and are well-positioned to weather the current economic environment.