VLO vs XOM

For growth investors, Exxon Mobil Corporation (XOM) is the stronger pick with -4.

5% revenue growth year-over-year, versus -5. 5% for Valero Energy Corporation (VLO). Exxon Mobil Corporation (XOM) offers the better valuation at 23. 1x trailing P/E (15. 6x forward), making it the more compelling value choice. Analysts rate Valero Energy Corporation (VLO) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Exxon Mobil Corporation (XOM) is the cheapest at 23.

1x versus Valero Energy Corporation at 33. 5x. On forward P/E, Valero Energy Corporation is actually cheaper at 10. 8x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Valero Energy Corporation (VLO) delivered a total return of +242.

7%, compared to +184. 7% for Exxon Mobil Corporation (XOM). Over 10 years, the gap is even starker: VLO returned +422. 7% versus XOM's +115. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Exxon Mobil Corporation (XOM) is the lower-risk stock at -0.

15β versus Valero Energy Corporation's 0. 27β — meaning VLO is approximately -284% more volatile than XOM relative to the S&P 500. On balance sheet safety, Exxon Mobil Corporation (XOM) carries a lower debt/equity ratio of 16% versus 44% for Valero Energy Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Exxon Mobil Corporation (XOM) is pulling ahead at -4.

5% versus -5. 5% for Valero Energy Corporation (VLO). On earnings-per-share growth, the picture is similar: Valero Energy Corporation grew EPS -11. 8% year-over-year, compared to -14. 5% for Exxon Mobil Corporation. Over a 3-year CAGR, XOM leads at -6. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Exxon Mobil Corporation (XOM) is the more profitable company, earning 8.

9% net margin versus 1. 9% for Valero Energy Corporation — meaning it keeps 8. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: XOM leads at 10. 5% versus 3. 5% for VLO. At the gross margin level — before operating expenses — XOM leads at 21. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Valero Energy Corporation (VLO) trades at 10.

8x forward P/E versus 15. 6x for Exxon Mobil Corporation — 4. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for XOM: 3. 6% to $160. 43.

All stocks in this comparison pay dividends.

Exxon Mobil Corporation (XOM) offers the highest yield at 2. 6%, versus 1. 8% for Valero Energy Corporation (VLO).

For long-horizon retirement investors, Exxon Mobil Corporation (XOM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

15), 2. 6% yield, +115. 7% 10Y return). Both have compounded well over 10 years (XOM: +115. 7%, VLO: +422. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.