ExxonMobil (NYSE:XOM – Get Free Report) and Expand Energy (NASDAQ:EXE – Get Free Report) 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, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.
Earnings & Valuation
This table compares ExxonMobil and Expand Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ExxonMobil | $388.23 billion | 1.75 | $28.84 billion | $9.73 | 17.09 |
| Expand Energy | $12.12 billion | 1.68 | $1.82 billion | $11.54 | 7.64 |
ExxonMobil has higher revenue and earnings than Expand Energy. Expand Energy is trading at a lower price-to-earnings ratio than ExxonMobil, indicating that it is currently the more affordable of the two stocks.
Dividends
ExxonMobil pays an annual dividend of $4.28 per share and has a dividend yield of 2.6%. Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.6%. ExxonMobil pays out 44.0% of its earnings in the form of a dividend. Expand Energy pays out 19.9% 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. ExxonMobil has raised its dividend for 42 consecutive years. Expand Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent ratings and recommmendations for ExxonMobil and Expand Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ExxonMobil | 1 | 14 | 11 | 1 | 2.44 |
| Expand Energy | 0 | 5 | 15 | 3 | 2.91 |
ExxonMobil currently has a consensus price target of $170.38, indicating a potential upside of 2.47%. Expand Energy has a consensus price target of $123.00, indicating a potential upside of 39.56%. Given Expand Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Expand Energy is more favorable than ExxonMobil.
Insider & Institutional Ownership
61.8% of ExxonMobil shares are owned by institutional investors. Comparatively, 97.9% of Expand Energy shares are owned by institutional investors. 0.0% of ExxonMobil shares are owned by insiders. Comparatively, 0.2% of Expand Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
ExxonMobil has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Expand Energy has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Profitability
This table compares ExxonMobil and Expand Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ExxonMobil | 10.24% | 16.63% | 9.59% |
| Expand Energy | 19.78% | 10.69% | 7.13% |
Summary
Expand Energy beats ExxonMobil on 11 of the 18 factors compared between the two stocks.
About ExxonMobil
ExxonMobil is an integrated energy and chemical company with operations spanning the oil and natural gas value chain. Its businesses explore for and produce crude oil and natural gas, refine and market fuels, and manufacture chemicals and other specialty products. The company’s products include gasoline, diesel, jet fuel, lubricants, petrochemical feedstocks and materials used in a wide range of consumer and industrial applications. ExxonMobil also pursues lower-emission solutions, including carbon capture and storage, hydrogen and lower-emission fuels.
About Expand Energy
Expand Energy Corporation is an independent natural gas exploration and production company focused on developing U.S. shale resources. Its activities include acquiring, exploring and operating oil and natural gas properties, with natural gas as its primary product. The company’s operations are concentrated in the Haynesville region of Louisiana and the Appalachia region, which includes the Marcellus and Utica formations. Its production supports the domestic natural gas market and related energy infrastructure.
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