ExxonMobil (NYSE:XOM – Get Free Report) and SFL (NYSE:SFL – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Dividends
ExxonMobil pays an annual dividend of $4.12 per share and has a dividend yield of 2.2%. SFL pays an annual dividend of $0.88 per share and has a dividend yield of 7.0%. ExxonMobil pays out 53.0% of its earnings in the form of a dividend. SFL pays out 183.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ExxonMobil has raised its dividend for 42 consecutive years and SFL has raised its dividend for 1 consecutive years.
Earnings and Valuation
This table compares ExxonMobil and SFL”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ExxonMobil | $361.06 billion | 2.10 | $28.84 billion | $7.77 | 23.58 |
| SFL | $733.04 million | 2.50 | -$26.43 million | $0.48 | 26.38 |
ExxonMobil has higher revenue and earnings than SFL. ExxonMobil is trading at a lower price-to-earnings ratio than SFL, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for ExxonMobil and SFL, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ExxonMobil | 0 | 13 | 11 | 1 | 2.52 |
| SFL | 0 | 1 | 2 | 0 | 2.67 |
ExxonMobil presently has a consensus price target of $167.70, suggesting a potential downside of 8.48%. SFL has a consensus price target of $14.00, suggesting a potential upside of 10.58%. Given SFL’s stronger consensus rating and higher possible upside, analysts clearly believe SFL is more favorable than ExxonMobil.
Insider & Institutional Ownership
61.8% of ExxonMobil shares are held by institutional investors. Comparatively, 28.6% of SFL shares are held by institutional investors. 0.0% of ExxonMobil shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares ExxonMobil and SFL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ExxonMobil | 8.88% | 13.14% | 7.62% |
| SFL | 8.76% | 3.41% | 0.92% |
Volatility & Risk
ExxonMobil has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, SFL has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.
Summary
ExxonMobil beats SFL on 12 of the 18 factors compared between the two stocks.
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.
About SFL
SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. The company operates in various sectors of the maritime, and shipping and offshore industries, including oil transportation, dry bulk shipments, chemical transportation, oil products transportation, container transportation, car transportation, and drilling rigs. As of December 31, 2023, the company owned seven crude oil carriers, six oil product tankers, 15 dry bulk carriers, 32 container vessels, one jack-up drilling rig, one ultra-deepwater drilling rig, and five car carriers. It primarily operates in Bermuda, Canada, Cyprus, Liberia, Namibia, Norway, Singapore, the United Kingdom, and the Marshall Islands. The company was formerly known as Ship Finance International Limited and changed its name to SFL Corporation Ltd. in September 2019. SFL Corporation Ltd. was founded in 2003 and is based in Hamilton, Bermuda.
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