Exxon Mobil (NYSE:XOM – Get Free Report) and Ecopetrol (NYSE:EC – Get Free Report) are both large-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Exxon Mobil and Ecopetrol”s revenue, earnings per share and valuation.
Get Exxon Mobil alerts: Exxon Mobil has higher revenue and earnings than Ecopetrol. Ecopetrol is trading at a lower price-to-earnings ratio than Exxon Mobil, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Exxon Mobil has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Ecopetrol has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Exxon Mobil and Ecopetrol, as provided by MarketBeat.com.
Exxon Mobil currently has a consensus price target of $125.00, suggesting a potential upside of 11.57%. Ecopetrol has a consensus price target of $11.75, suggesting a potential upside of 27.51%. Given Ecopetrol’s higher probable upside, analysts plainly believe Ecopetrol is more favorable than Exxon Mobil.
Profitability
This table compares Exxon Mobil and Ecopetrol’s net margins, return on equity and return on assets.
Institutional & Insider Ownership
61.8% of Exxon Mobil shares are owned by institutional investors. 0.0% of Exxon Mobil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
Exxon Mobil pays an annual dividend of $3.96 per share and has a dividend yield of 3.5%. Ecopetrol pays an annual dividend of $1.51 per share and has a dividend yield of 16.4%. Exxon Mobil pays out 56.3% of its earnings in the form of a dividend. Ecopetrol pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exxon Mobil has raised its dividend for 42 consecutive years.
Summary
Exxon Mobil beats Ecopetrol on 15 of the 18 factors compared between the two stocks.
About Exxon Mobil
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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.
About Ecopetrol
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Ecopetrol S.A. operates as an integrated energy company. The company operates through four segments: Exploration and Production; Transport and Logistics; Refining, Petrochemical and Biofuels; and Electric Power Transmission and Toll Roads Concessions. It engages in the exploration and production of oil and gas; transportation of crude oil, motor fuels, fuel oil, and other refined products, including diesel, jet, and biofuels; processing and refining crude oil; distribution of natural gas and LPG; sale of refined and petrochemical products; supplying of electric power transmission services; design, development, construction, operation, and maintenance of road and energy infrastructure projects; and supplying of information technology and telecommunications services. As of December 31, 2022, the company had approximately 9,127 kilometers of crude oil and multi-purpose pipelines. It also produces and commercializes polypropylene resins and compounds, and masterbatches; and offers industrial service sales to customers and specialized management services. It has operations in Colombia, the United States, Asia, Central America and the Caribbean, Europe, and South America. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was incorporated in 1948 and is headquartered in Bogotá, Colombia.