Trecora Resources (NYSE: XOM) and Exxon Mobil (NYSE:XOM) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Valuation and Earnings
This table compares Trecora Resources 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|
|Trecora Resources||$245.14 million||1.37||$18.00 million||$0.44||31.25|
|Exxon Mobil||$244.36 billion||1.35||$19.71 billion||$3.59||21.73|
Institutional and Insider Ownership
48.2% of Trecora Resources shares are held by institutional investors. Comparatively, 51.9% of Exxon Mobil shares are held by institutional investors. 6.4% of Trecora Resources shares are held by insiders. Comparatively, 0.1% of Exxon Mobil shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current ratings and target prices for Trecora Resources and Exxon Mobil, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Trecora Resources currently has a consensus price target of $16.00, suggesting a potential upside of 16.36%. Exxon Mobil has a consensus price target of $87.17, suggesting a potential upside of 11.75%. Given Trecora Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Trecora Resources is more favorable than Exxon Mobil.
Exxon Mobil pays an annual dividend of $3.28 per share and has a dividend yield of 4.2%. Trecora Resources does not pay a dividend. Exxon Mobil pays out 91.4% 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 increased its dividend for 35 consecutive years.
Risk & Volatility
Trecora Resources has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Exxon Mobil has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.
This table compares Trecora Resources and Exxon Mobil’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Exxon Mobil beats Trecora Resources on 11 of the 18 factors compared between the two stocks.
Trecora Resources Company Profile
Trecora Resources manufactures and sells various specialty petrochemical products and synthetic waxes in the United States. The company operates in two segments, Petrochemical and Specialty Waxes. The Petrochemical segment offers hydrocarbons and other petroleum based products, including isopentane, normal pentane, isohexane, and hexane for use in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, and crude oil from the Canadian tar sands, as well as in the catalyst support industry. It also owns and operates pipelines. The Specialty Waxes segment provides specialty polyethylene for use in the paints and inks, adhesives, coatings, and PVC lubricants markets; and specialized synthetic poly alpha olefin waxes for use as toner in printers, as well as additives for candles. The company also provides custom processing services; and produces copper and zinc concentrates, and silver and gold doré. Trecora Resources was formerly known as Arabian American Development Company and changed its name to Trecora Resources in June 2014. Trecora Resources was founded in 1967 and is based in Sugar Land, Texas.
Exxon Mobil Company Profile
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/Other Americas, Europe, Africa, Asia, and Australia/Oceania. It operates through Upstream, Downstream, and Chemical segments. The company also manufactures petroleum products; manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as various specialty products; and transports and sells crude oil, natural gas, and petroleum products. As of December 31, 2017, it had approximately 25,827 net operated wells with proved reserves of 21.2 billion oil-equivalent barrels. The company has collaboration agreements with MagnaBond, LLC to develop technologies that enhances evaluation of well cementing, casing, and tubing. Exxon Mobil Corporation was founded in 1870 and is headquartered in Irving, Texas.
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