Head to Head Analysis: PBF Energy (PBF) and Exxon Mobil (XOM)

PBF Energy (NYSE: PBF) and Exxon Mobil (NYSE:XOM) are both mid-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

51.1% of Exxon Mobil shares are owned by institutional investors. 2.6% of PBF Energy shares are owned by company insiders. Comparatively, 0.1% of Exxon Mobil shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares PBF Energy 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
PBF Energy $15.92 billion 0.24 $170.81 million $2.00 17.46
Exxon Mobil $226.09 billion 1.63 $7.84 billion $3.07 28.32

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

Volatility & Risk

PBF Energy has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Exxon Mobil has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PBF Energy and Exxon Mobil, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PBF Energy 4 5 5 0 2.07
Exxon Mobil 5 12 7 2 2.23

PBF Energy currently has a consensus target price of $30.11, suggesting a potential downside of 13.75%. Exxon Mobil has a consensus target price of $86.86, suggesting a potential downside of 0.08%. Given Exxon Mobil’s stronger consensus rating and higher possible upside, analysts clearly believe Exxon Mobil is more favorable than PBF Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
PBF Energy 1.14% 2.35% 0.78%
Exxon Mobil 5.14% 8.21% 4.40%

Dividends

PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 3.4%. Exxon Mobil pays an annual dividend of $3.08 per share and has a dividend yield of 3.5%. PBF Energy pays out 60.0% of its earnings in the form of a dividend. 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. Exxon Mobil has raised its dividend for 35 consecutive years. Exxon Mobil is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Exxon Mobil beats PBF Energy on 15 of the 18 factors compared between the two stocks.

About PBF Energy

PBF Energy Inc. (PBF Energy) is a holding company. The Company is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company operates through two segments: Refining and Logistics. It sells its products throughout the Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other regions of the United States and Canada, and ships products to other international destinations. As of December 31, 2016, it owned and operated five domestic oil refineries and related assets. As of December 31, 2016, its refineries had a combined processing capacity, known as throughput, of approximately 900,000 barrels per day (bpd) and a weighted-average Nelson Complexity Index of approximately 12.2. As of December 31, 2016, the Company owned and operated five refineries providing geographic and market diversity.

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.

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