Analyzing Teekay (NYSE:TK) & Exxon Mobil (NYSE:XOM)

Exxon Mobil (NYSE:XOM) and Teekay (NYSE:TK) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Volatility & Risk

Exxon Mobil has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Teekay has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Insider and Institutional Ownership

61.8% of Exxon Mobil shares are held by institutional investors. Comparatively, 46.7% of Teekay shares are held by institutional investors. 0.0% of Exxon Mobil shares are held by company insiders. Comparatively, 2.4% of Teekay shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Exxon Mobil and Teekay”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exxon Mobil	$324.92 billion	1.52	$33.68 billion	$6.88	17.03
Teekay	$992.52 million	0.90	$133.77 million	$1.41	6.89

Exxon Mobil has higher revenue and earnings than Teekay. Teekay is trading at a lower price-to-earnings ratio than Exxon Mobil, indicating that it is currently the more affordable of the two stocks.

Dividends

Exxon Mobil pays an annual dividend of $4.12 per share and has a dividend yield of 3.5%. Teekay pays an annual dividend of $0.25 per share and has a dividend yield of 2.6%. Exxon Mobil pays out 59.9% of its earnings in the form of a dividend. Teekay pays out 17.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Exxon Mobil has increased its dividend for 42 consecutive years and Teekay has increased its dividend for 1 consecutive years. Exxon Mobil is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Exxon Mobil	9.17%	11.34%	6.79%
Teekay	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and target prices for Exxon Mobil and Teekay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exxon Mobil	0	10	8	2	2.60
Teekay	1	0	0	0	1.00

Exxon Mobil presently has a consensus price target of $128.50, indicating a potential upside of 9.65%. Given Exxon Mobil’s stronger consensus rating and higher probable upside, analysts clearly believe Exxon Mobil is more favorable than Teekay.

Summary

Exxon Mobil beats Teekay on 16 of the 18 factors compared between the two stocks.

About Exxon Mobil

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 Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.