Comparing Exxon Mobil (XOM) & PBF Energy (PBF)

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

Dividends

Exxon Mobil pays an annual dividend of $3.08 per share and has a dividend yield of 3.7%. PBF Energy pays an annual dividend of $1.20 per share and has a dividend yield of 3.4%. 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. PBF Energy pays out 57.4% of its earnings in the form of a dividend. PBF Energy has raised its dividend for 34 consecutive years.

Institutional and Insider Ownership

51.1% of Exxon Mobil shares are held by institutional investors. 0.1% of Exxon Mobil shares are held by company insiders. Comparatively, 2.6% of PBF Energy shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations for Exxon Mobil and PBF Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exxon Mobil 5 12 7 2 2.23
PBF Energy 3 6 5 0 2.14

Exxon Mobil presently has a consensus price target of $86.33, suggesting a potential upside of 2.81%. PBF Energy has a consensus price target of $29.13, suggesting a potential downside of 16.74%. Given Exxon Mobil’s stronger consensus rating and higher probable upside, research analysts plainly believe Exxon Mobil is more favorable than PBF Energy.

Volatility and Risk

Exxon Mobil has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, PBF Energy has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Profitability

This table compares Exxon Mobil and PBF 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%
PBF Energy 1.14% 2.35% 0.78%

Earnings and Valuation

This table compares Exxon Mobil and PBF Energy’s 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 27.35
PBF Energy $15.92 billion 0.24 $170.81 million $2.09 16.74

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.

Summary

Exxon Mobil beats PBF Energy on 14 of the 18 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 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.

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