Analyzing Sasol (NYSE:SSL) and Exxon Mobil (NYSE:XOM)

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

Profitability

This table compares Exxon Mobil and Sasol’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exxon Mobil	8.99%	11.22%	6.69%
Sasol	N/A	N/A	N/A

Volatility and Risk

Exxon Mobil has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Sasol has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Institutional and Insider Ownership

61.8% of Exxon Mobil shares are held by institutional investors. Comparatively, 1.2% of Sasol shares are held by institutional investors. 0.0% of Exxon Mobil shares are held by insiders. Comparatively, 1.0% of Sasol shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Exxon Mobil and Sasol”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exxon Mobil	$349.59 billion	1.45	$33.68 billion	$6.88	17.45
Sasol	$249.10 billion	0.02	$372.86 million	N/A	N/A

Exxon Mobil has higher revenue and earnings than Sasol.

Analyst Ratings

This is a summary of current recommendations and price targets for Exxon Mobil and Sasol, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exxon Mobil	0	13	10	1	2.50
Sasol	2	2	0	0	1.50

Exxon Mobil currently has a consensus target price of $129.45, suggesting a potential upside of 7.81%. Given Exxon Mobil’s stronger consensus rating and higher possible upside, research analysts clearly believe Exxon Mobil is more favorable than Sasol.

Dividends

Exxon Mobil pays an annual dividend of $4.12 per share and has a dividend yield of 3.4%. Sasol pays an annual dividend of $0.08 per share and has a dividend yield of 1.2%. Exxon Mobil pays out 59.9% of its earnings in the form of a dividend. Exxon Mobil has increased its dividend for 42 consecutive years. Exxon Mobil is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Exxon Mobil beats Sasol on 13 of the 16 factors compared between the two stocks.

About Exxon Mobil

Exxon Mobil 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 Sasol

Sasol Limited operates as a chemical and energy company in South Africa and internationally. It offers alumina, such as battery materials, catalyst supports, abrasives and polishing, and polymer additives; cobalt fischer-tropsch catalysts; carbon-based and recarburiser products; graphite electrodes; and mono-ethylene glycol and chlor-alkali products, monomers, mining chemicals and reagents, blends and hydrocarbons, methanol products, polymers, phenolics, and fertilizers. The company also provides linear alkyl benzene, sulfonate, macrogol/polyethylene glycol, ethanol, isopropyl, acetone, and MIBK and ethyl acetate products; and fatty alcohols, alkoxylates, ether sulfates, solvents, dispersants, diluents esters, alpha-hydroxy acids ester, waxes, diluents, guerbet alcohols, biosurfactants, C6-C20+ alcohols, ethoxylates, propoxylates, paraffins/isoparaffins, parafols, amines, alkylphenols, and sulfates. In addition, it offers alcohols, esters, ethers, carboxylic acids, surfactants, oil and water soluble polyglycols, formulation and surface modifiers, solvents and coalescents, wax cuts, blends and forms, FT hard waxes, blends, lubrication packages, nucleators, release agents, emulsifiers, wetting agents, tank-mix adjuvant components, fertilizer additives, and specialty solvents. Further, the company explores, develops, produces, markets, and distributes natural oil and gas, and associated products; markets fuels and lubricants; develops and implements GTL and CTL ventures; operates coal mines; trades and transports oil, petrochemicals, and chemical products and derivatives; and provides engineering, research and development, and technology transfer services. Sasol Limited was founded in 1950 and is based in Johannesburg, South Africa.