Why are some investors concerned about Exxon's latest earnings? (Part 5 of 7)
XOM versus its peers
See below for key statistics for Exxon versus its peers.
- XOM: Exxon Mobil
- CVX: Chevron Corp.
- BP: BP PLC
- RDS/A: Royal Dutch Shell
- COP: ConocoPhillips
- OXY: Occidental Petroleum
As shown above, Exxon Mobil is the largest among its peers by market cap, enterprise value, and production. Though other companies produce more than Exxon, they aren’t publicly traded equities, but rather sovereign oil companies such as Saudi Aramco. Exxon trades at a premium on an enterprise-to-EBITDA basis compared to most of its peers, except for OXY (which is expected to grow U.S. oil production at 9% in 2014, likely one of the reasons behind its higher multiple). Exxon has historically traded at a premium, as it has generally been able to produce better than its peers’ returns, and it has a long and demonstrated history of being able to successfully generate cash flow and return it to shareholders. The below chart is from one of Exxon’s company presentations. This chart demonstrates XOM’s returns on capital employed compared to peers for 2008 through 2012.
Other key statistics for Exxon compared to its peers include its estimated earnings per share, or EPS, as determined by the average of Wall Street analysts’ estimates, as well as its price-to-earnings multiple.
Also displayed are Exxon’s current dividend yields compared to peers (annualized dividend divided by share price), as well as its one-, three-, and five-year returns. Exxon also generally trades at a premium compared to peers on a P/E basis.
As Exxon is the largest publicly traded energy stock, it has a large effect on many major energy ETFs. To see how Exxon could affect your energy ETF investments, please read on to the next part of this series.
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