ExxonMobil and Chevron are two big companies that find and sell oil and gas. They both make a lot of money, but soon they will tell us how much money they made in the last three months of 2023. Some people think one company is better to buy than the other because of how they work and what they plan to do in the future. Read from source...
1. The author fails to mention that both ExxonMobil and Chevron are investing in renewable energy sources, such as wind and solar power, despite being oil and gas companies. This omission gives a false impression that only one of the two is committed to sustainability, which is not true.
2. The author mentions Exxon's acquisition of Denbury for $5 billion, but does not provide any context or explanation of why this deal was important or beneficial for ExxonMobil. A reader might wonder what exactly Denbury does and how it relates to Exxon's carbon capture goals.
3. The author states that Chevron is "entering" the electric vehicle sector, implying that it is a new venture for the company. However, Chevron has been involved in EV charging infrastructure since 2018, through its subsidiary Caltex, which operates over 7,000 retail stations across Asia, Australia and North America. This information contradicts the impression that Chevron is just starting to explore the electric vehicle market.
4. The author compares ExxonMobil's and Chevron's valuation metrics, such as price-to-earnings and price-to-sales ratios, but does not provide any analysis or interpretation of what these numbers mean for investors. A more informative approach would be to discuss how the companies are valued relative to their peers, their historical performance, or their expected future growth prospects.
5. The author concludes by saying that analysts expect ExxonMobil to offer more upside than Chevron, but does not explain why this is the case or what factors could influence the stock prices after the earnings reports. A more thorough analysis would involve examining the key drivers of each company's performance, such as production volumes, costs, margins, cash flow, dividends, etc., and how they differ from market expectations.