Better Buy: Chevron vs. Exxon
Oil prices are rising sharply as demand recovers from coronavirus-related economic shut downs. Chevron's (NYSE: CVX) stock is up around 25% so far in 2021 while peer ExxonMobil's (NYSE: XOM) shares have rallied a dramatic 50%. Should energy investors get on board Exxon's momentum train or does Chevron offer a better opportunity to invest in oil today? Here's a quick look at what investors should be thinking about as they decide.
To be fair, the differences between Chevron and Exxon are actually pretty few. That fact is that they are both integrated oil and natural gas giants that operate on a global scale that would be very difficult to replicate today from the ground up. Exxon is the larger of the two companies by market cap, weighing in at $260 billion. Chevron's market capitalization is roughly $200 billion. Both have assets across the industry, from the upstream (drilling) to the downstream (chemicals and refining). The goal of this diversification is to help smooth out the cyclical energy industry's typical ups and downs.
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Source Fool.com
