Analysis And Valuation: Exxon And ConocoPhillips

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Includes: COP, XOM
by: CRG Research

Crude oil prices declined recently; we remain opportunistically bullish on crude oil. That being said, investors should buy shares of Exxon (NYSE:XOM) and ConocoPhillips (NYSE:COP) primarily based on valuations, and secondarily as a way of playing an increase in oil prices.

Exxon - Buy

Company v. Industry

  • Return on Assets (TTM): 12.36 v. 5.67
  • Return on Investment (TTM): 16.5 v. 6.88
  • Return on Equity (TTM): 25.84 v. 9.45

(click charts to enlarge)

Revenue is increasing and forecast to continue increasing.

Revenue-share is increasing; the increase in revenue-share is bullish.

Book value-share is increasing; the increase in book value-share is bullish.

The share price is increasing; however, recently the share price has declined.

Price-sales is declining as the share price is rising; the enterprise is getting cheaper.

Price-book value is off of its recent high; however, it is still above the 2011 low.

Price Target: $93

ConocoPhillips - Buy

  • Return on Assets (TTM): 7.70 v. 0.43
  • Return on Investment: 9.71 v. 0.78
  • Return on Equity: 18.09 v. 1.42

(click charts to enlarge)

ConocoPhillips revenue increased; although, recently revenue has sequentially declined.

Conoco Phillips revenue-share is increasing; the increase is revenue-share is bullish.

Conoco Phillips share price is declining, although the share price remains above the 2011 low.

ConocoPhillips has gotten cheaper over the last year.

Investors should be accumulating shares of ConocoPhillips as revenue-share has increased and the firm has gotten cheaper on a price-sales basis.

For more details on ConocoPhillips click here.

Price Target: $63

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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