Chevron Corporation (CVX), Royal Dutch Shell plc (ADR) (RDS.A), Exxon Mobil Corporation (XOM): Which Energy Giant Can Make You Really Rich?

Exxon Mobil Corporation (NYSE:XOM) is a slower growing stock, and pays a lower dividend yield than Chevron Corporation (NYSE:CVX). The real star in dividend payouts is Royal Dutch Shell plc (ADR) (NYSE:RDS.A), which offers a massive 5.3% yield on its shares. Furthermore, the company’s payout ratio is also at a healthy 41.5%.

Shell has also managed to outperform the competition in revenue growth, yet it falls behind in net income growth over the past three years. Perhaps, the company’s plans to divest its non-core assets will allow it to minimize its costs and take advantage of its superior revenue growth.

In absolute figures, Exxon Mobil Corporation (NYSE:XOM)’s revenue is way ahead of the competition and the company’s ability to extract huge revenue from its multi-faceted operations allows its ROE metric to show a superior rating compared to its competition. However, in the case of P/E values, only Royal Dutch Shell plc (ADR) (NYSE:RDS.A) manages to look undervalued when compared to the industry average, and, more importantly for investors, it is also the cheapest stock available of the three oil giants.

Final thoughts

Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM) and Royal Dutch Shell plc (ADR) (NYSE:RDS.A) are great energy companies that have a global presence. At the moment however, Royal Dutch Shell provides best value for the money with its dividend yield, buyback program and the streamlining of its core assets. Most importantly, the company looks to have found stability in management, which adds to an investor’s confidence. I strongly believe Royal Dutch Shell to be a strong, long-term buy.

The article Which Energy Giant Can Make You Really Rich? originally appeared on Fool.com and is written by Marina Avilkina.

Marina Avilkina has no position in any stocks mentioned. The Motley Fool recommends Chevron. Marina is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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