Better Buy: Exxon Mobil vs. Chevron
Oil prices have gone on a wild ride in 2020, with energy companies like Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) taking massive hits on the top and bottom lines. It shouldn't be much of a surprise to see that their stocks have been laid low as well, with Chevron down around 28% so far this year and Exxon off by roughly 38%. If you are looking at the out-of-favor energy sector for investment ideas, however, this pair might be worth examining. But is one a better pick than the other?
Although oil prices literally fell to zero at one point in the first half of 2020, both Chevron and Exxon are likely to survive this rough patch. They are both financially strong companies (more on this in a second) with diversified operations and take a long-term view of the energy market. That means they examine supply and demand over decades, not months. Today, the big issue is the supply disruption caused by the global economic shutdowns used to slow the spread of COVID-19. That is a big problem, but not one that's likely to linger forever, noting that there are massive efforts around the world to develop a vaccine.
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Source Fool.com
