Suncor Energy (SU) vs. Exxon Mobil (XOM) Head-To-Head Contrast

Exxon Mobil (NYSE: XOM) and Suncor Energy (NYSE:SU) are both large-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Risk & Volatility

Exxon Mobil has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Insider and Institutional Ownership

51.2% of Exxon Mobil shares are held by institutional investors. Comparatively, 65.6% of Suncor Energy shares are held by institutional investors. 0.1% of Exxon Mobil shares are held by insiders. Comparatively, 1.0% of Suncor Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Exxon Mobil pays an annual dividend of $3.08 per share and has a dividend yield of 3.7%. Suncor Energy pays an annual dividend of $1.01 per share and has a dividend yield of 2.9%. Exxon Mobil pays out 100.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suncor Energy pays out 60.8% of its earnings in the form of a dividend. Suncor Energy has increased its dividend for 34 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for Exxon Mobil and Suncor Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exxon Mobil 5 12 8 1 2.19
Suncor Energy 0 4 10 1 2.80

Exxon Mobil presently has a consensus price target of $86.10, indicating a potential upside of 3.02%. Suncor Energy has a consensus price target of $43.66, indicating a potential upside of 26.73%. Given Suncor Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Suncor Energy is more favorable than Exxon Mobil.

Profitability

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

Net Margins Return on Equity Return on Assets
Exxon Mobil 5.14% 8.21% 4.40%
Suncor Energy 11.63% 5.68% 2.91%

Earnings & Valuation

This table compares Exxon Mobil and Suncor Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exxon Mobil $226.09 billion 1.57 $7.84 billion $3.07 27.22
Suncor Energy $20.20 billion 2.82 $327.75 million $1.66 20.75

Exxon Mobil has higher revenue and earnings than Suncor Energy. Suncor Energy 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

Suncor Energy beats Exxon Mobil on 11 of the 17 factors compared between the two stocks.

About Exxon Mobil

Exxon Mobil Corporation is engaged in energy business. The Company is engaged in the exploration, production, transportation and sale of crude oil and natural gas, and the manufacture, transportation and sale of petroleum products. The Company also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a range of specialty products. The Company’s segments include Upstream, Downstream, Chemical, and Corporate and Financing. The Upstream segment operates to explore for and produce crude oil and natural gas. The Downstream operates to manufacture and sell petroleum products. The Chemical segment operates to manufacture and sell petrochemicals. The Company has exploration and development activities in projects located in the United States, Canada/South America, Europe, Africa, Asia and Australia/Oceania.

About Suncor Energy

Suncor Energy Inc is a Canada-based integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. The Company also conducts energy trading activities.

Receive News & Ratings for Exxon Mobil Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Exxon Mobil Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply