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Better Buy: ExxonMobil vs. Dow Inc.

There are probably as many similarities between oil and gas giant ExxonMobil (NYSE: XOM) and chemicals company Dow Inc. (NYSE: DOW) as there are differences between the two. To begin with, both offer regular income for dividend-seeking investors. ExxonMobil offers a yield that is little less than double what Dow stock offers currently, though. Let’s discuss certain key factors that you should consider before selecting one over the other.

Even after falling to half of the price at the start of the year, ExxonMobil’s market capitalization is four times that of Dow’s. Both companies’ products and services are largely different with few overlaps. ExxonMobil is an integrated oil and gas company involved in exploration, production, refining, and marketing of oil and gas products. It also produces chemicals, which is where the two companies’ businesses overlap.

Still, chemicals account for just around 10% of ExxonMobil’s operations by its assets and accounted for less than 5% of its 2019 earnings. In short, ExxonMobil’s fortunes are largely tied to oil and gas.

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