Head-To-Head Analysis: Torm (NASDAQ:TRMD) versus ExxonMobil (NYSE:XOM)

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Torm and ExxonMobil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torm	0	2	1	1	2.75
ExxonMobil	0	12	10	0	2.45

Torm currently has a consensus target price of $38.00, suggesting a potential upside of 8.32%. ExxonMobil has a consensus target price of $167.45, suggesting a potential upside of 0.81%. Given Torm’s stronger consensus rating and higher possible upside, equities analysts plainly believe Torm is more favorable than ExxonMobil.

Institutional & Insider Ownership

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

Volatility & Risk

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

Valuation & Earnings

This table compares Torm and ExxonMobil”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torm	$1.76 billion	2.03	$285.30 million	$6.07	5.78
ExxonMobil	$332.24 billion	2.07	$28.84 billion	$7.77	21.38

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.

Dividends

Torm pays an annual dividend of $7.00 per share and has a dividend yield of 20.0%. ExxonMobil pays an annual dividend of $4.12 per share and has a dividend yield of 2.5%. Torm pays out 115.3% 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 pays out 53.0% of its earnings in the form of a dividend. ExxonMobil has raised its dividend for 42 consecutive years.

Profitability

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

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

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.

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.