Torm (NASDAQ:TRMD) versus ExxonMobil (NYSE:XOM) Critical Comparison

ExxonMobil (NYSE:XOM) and Torm (NASDAQ:TRMD) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations for ExxonMobil and Torm, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ExxonMobil	0	12	10	0	2.45
Torm	0	1	2	1	3.00

ExxonMobil currently has a consensus price target of $167.45, indicating a potential downside of 0.07%. Torm has a consensus price target of $38.00, indicating a potential upside of 7.89%. Given Torm’s stronger consensus rating and higher possible upside, analysts plainly believe Torm is more favorable than ExxonMobil.

Volatility & Risk

ExxonMobil has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Torm has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.

Earnings & Valuation

This table compares ExxonMobil and Torm”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ExxonMobil	$332.24 billion	2.09	$28.84 billion	$7.77	21.57
Torm	$1.34 billion	2.68	$285.30 million	$6.07	5.80

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

Profitability

This table compares ExxonMobil and Torm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ExxonMobil	8.88%	13.14%	7.62%
Torm	35.51%	27.24%	17.96%

Dividends

ExxonMobil pays an annual dividend of $4.12 per share and has a dividend yield of 2.5%. Torm pays an annual dividend of $7.01 per share and has a dividend yield of 19.9%. ExxonMobil pays out 53.0% of its earnings in the form of a dividend. Torm pays out 115.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ExxonMobil has raised its dividend for 42 consecutive years.

Institutional & Insider Ownership

61.8% of ExxonMobil shares are held by institutional investors. Comparatively, 73.9% of Torm shares are held by institutional investors. 0.0% of ExxonMobil shares are held by insiders. Comparatively, 0.4% of Torm shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Torm beats ExxonMobil on 10 of the 18 factors compared between the two stocks.

About ExxonMobil

ExxonMobil 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 Torm

TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.