Better Buy: ConocoPhillips vs. BP

Better Buy: ConocoPhillips vs. BP

U.S. oil giant ConocoPhillips (NYSE: COP) has undergone a dramatic transformation over the past year, jettisoning a slew of assets, which has given it the cash to pay down debt and repurchase stock. As a result, the company's stock has vastly outperformed BP (NYSE: BP) since I pitted them against each other around this time last year.

That said, while ConocoPhillips has outperformed over the past year, the primary reason I chose BP was due to its more visible long-term growth prospects since ConocoPhillips lacked a clearly defined plan at the time. Since so much has changed since I made that call, I thought that now was an excellent opportunity to review and see if BP still has what it takes to outperform over the next few years.

BP and ConocoPhillips are financially strong oil companies. As the following table shows, both have top-notch credit ratings, low leverage metrics, and ample cash:

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Source: Fool.com