Reviewing Teekay (NYSE:TK) and Exxon Mobil (NYSE:XOM)

Teekay (NYSE:TK) and Exxon Mobil (NYSE:XOM) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Teekay and Exxon Mobil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay	1	0	0	0	1.00
Exxon Mobil	0	10	8	2	2.60

Exxon Mobil has a consensus target price of $128.67, suggesting a potential upside of 8.63%. Given Exxon Mobil’s stronger consensus rating and higher possible upside, analysts clearly believe Exxon Mobil is more favorable than Teekay.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teekay	N/A	N/A	N/A
Exxon Mobil	9.17%	11.34%	6.79%

Dividends

Teekay pays an annual dividend of $0.25 per share and has a dividend yield of 2.5%. Exxon Mobil pays an annual dividend of $4.12 per share and has a dividend yield of 3.5%. Teekay pays out 17.7% 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. Teekay has raised its dividend for 1 consecutive years and Exxon Mobil has raised its dividend for 42 consecutive years. Exxon Mobil is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

46.7% of Teekay shares are owned by institutional investors. Comparatively, 61.8% of Exxon Mobil shares are owned by institutional investors. 2.4% of Teekay shares are owned by company insiders. Comparatively, 0.0% of Exxon Mobil shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Teekay has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Exxon Mobil has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Valuation and Earnings

This table compares Teekay 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
Teekay	$992.52 million	0.92	$133.77 million	$1.41	7.07
Exxon Mobil	$324.92 billion	1.54	$33.68 billion	$6.88	17.22

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

Summary

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

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.

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.