Exxon Mobil Corporation (XOM)vs Chevron Corporation (CVX)

Quick verdict

The number that most separates these two integrated majors is debt. At 30 June 2026 Exxon Mobil carried $42.4bn of total borrowings against $10.6bn of cash, while Chevron reported just $0.4bn of total debt against $9.6bn of cash — a net cash position, shown by net debt to EBITDA of -0.17 versus Exxon's 0.42. In a sector whose earnings swing with the oil price, that gap decides who can keep spending and distributing through a downturn without reaching for the bond market. Chevron takes the valuation, balance-sheet and income factors; Exxon takes growth on shallower recent declines. Quality is a genuine tie — return on invested capital of 11.78% at Exxon against 12.14% at Chevron is inside the noise. On the overall scorecard Chevron leads four to two, with both stocks tagged income and mature.

At-a-glance comparison

Business model and revenue mix

Both are US-listed integrated oil and gas businesses spanning upstream production, refining and chemicals, so the differences are of scale and structure rather than activity. Exxon Mobil turned over $368.8bn in the twelve months to June 2026 and earned $32.8bn of net income, against Chevron's $208.7bn of revenue and $20.6bn of net income — Exxon is close to twice the size on the top line and was valued at $655.7bn at the 4 September 2026 close, versus $412.1bn for Chevron. Exxon's description extends to low-carbon solutions alongside the core barrels; Chevron's spans petrochemicals and fuels. Neither reports a separate operating-income line, so operating profit for both is measured before interest and tax: $46.1bn for Exxon and $32.1bn for Chevron over the same twelve months.

Valuation

On the multiples our data holds, Chevron is the cheaper of the pair and takes the valuation factor. Enterprise value to EBITDA stands at 7.24 against Exxon's 9.07 — the widest of the valuation gaps, and the one least distorted by the debt difference is precisely the one that captures it. Price to book of 2.17 undercuts Exxon's 2.53, and free cash flow yield of 6.55% beats 4.66%, reflecting $27.0bn of free cash flow in the twelve months to June 2026 against Exxon's $30.6bn on a far larger market capitalisation. The two are near-identical on earnings: a trailing P/E of 20.08 for Chevron and 20.52 for Exxon. Price to sales inverts the picture at 1.97 versus 1.78, but that simply reflects Exxon's much larger revenue base.

Growth profile

Growth here means the shape of a decline rather than expansion. Measured from fiscal 2022 to fiscal 2025, Exxon's revenue compounded at -7.05% a year and Chevron's at -7.85%; earnings per share fell harder, at -20.35% and -28.69% respectively. Exxon wins the factor on shallower contraction at both lines, not on any absolute progress. The five-year figures look very different — 12.85% revenue CAGR for Exxon and 14.32% for Chevron from fiscal 2020 to fiscal 2025 — but 2020 was a collapsed base year for oil demand, so those rates measure recovery rather than underlying growth and should not be read alongside the three-year numbers as though they describe the same trend. On that reading, Chevron's steeper EPS decline is the clearer differentiator.

Profitability and quality

Margins favour Chevron, despite the smaller revenue base. Over the twelve months to June 2026 Chevron converted 15.37% of sales into operating profit and 9.87% into net income, against 12.51% and 8.88% at Exxon. Chevron's gross margin of 43.65% has no Exxon counterpart in our data, so no comparison is possible on that line. Returns, however, are effectively level and the quality factor is scored a tie: return on equity of 12.38% at Exxon against 12.22% at Chevron, and return on invested capital of 11.78% against 12.14%. The two measures point in opposite directions by fractions of a percentage point, which is the definition of too close to call. ROIC is the more useful of the pair here, since both companies have been buying back stock and shrinking the equity denominator.

Balance-sheet risk

This is where the pair genuinely diverge. Chevron's $0.4bn of total debt at 30 June 2026 is trivial against $9.6bn of cash, producing net debt to EBITDA of -0.17 — a net cash balance sheet. Exxon's $42.4bn of debt against $10.6bn of cash gives 0.42, still modest by any absolute standard but a real obligation. The current ratio of 1.25 at Chevron edges Exxon's 1.13. The one metric running the other way is interest coverage, 59.52 times at Exxon versus 22.46 times at Chevron, though with debt this small at Chevron the ratio is close to meaningless as a solvency signal. The factor goes to Chevron, and the practical consequence is flexibility: capital spending and distributions can be sustained deeper into a price downturn without new borrowing.

Price performance and shareholder returns

Shareholder returns split by preference. Chevron pays the larger dividend — a 3.35% yield on $6.98 per share over the twelve months to June 2026, against Exxon's 2.56% on $4.08 — and takes the income factor. The cover is thinner, with a payout ratio of 67.33% versus 52.63%, so Chevron retains less of its earnings. Exxon leans harder on repurchases, with a buyback yield of 3.13% against 2.70%, which supports per-share figures rather than delivering cash. Exxon's trailing EPS of $7.77 on 4.11 billion shares compares with Chevron's $10.39 on 1.98 billion. Both funded distributions comfortably from free cash flow over the period — $30.6bn at Exxon and $27.0bn at Chevron. For a holder wanting cash now, Chevron; for one indifferent between cash and share count, the total is closer.

Which stock fits which investor

Income seekers are pointed towards Chevron on the 3.35% yield, though the 67.33% payout ratio leaves less headroom than Exxon's 52.63%. Value-oriented buyers also land on Chevron: 7.24 times EV/EBITDA and a 6.55% free cash flow yield are the cheaper terms, and the near-identical P/Es of 20.08 and 20.52 mean the earnings multiple does not argue against it. Anyone prioritising the lesser rate of decline would take Exxon, whose revenue fell at 7.05% a year and EPS at 20.35% a year from fiscal 2022 to fiscal 2025, both shallower than Chevron's. Quality buyers have no clear call — ROIC of 11.78% against 12.14% is a tie. Both carry the same style tag, income and mature; neither is positioned as a growth holding on these figures.

• Value: CVX
• Growth: XOM
• Income: CVX
• Quality: CVX

Frequently asked questions

Which is cheaper, XOM or CVX?

Chevron, on most measures as at the 4 September 2026 close. Its EV/EBITDA of 7.24 sits below Exxon's 9.07, price to book is 2.17 against 2.53, and free cash flow yield is 6.55% against 4.66%. The trailing P/Es are almost identical at 20.08 and 20.52.

Which has the stronger balance sheet?

Chevron, clearly. At 30 June 2026 it held $9.6bn of cash against just $0.4bn of total debt, giving net debt to EBITDA of -0.17 — a net cash position. Exxon carried $42.4bn of debt against $10.6bn of cash, for a ratio of 0.42.

Which pays the better dividend?

Chevron yields 3.35% on dividends of $6.98 per share over the twelve months to June 2026, ahead of Exxon's 2.56% on $4.08. Exxon's payout is better covered, however, at 52.63% of earnings versus Chevron's 67.33%.

Is either company actually growing?

Not on the three-year measure. From fiscal 2022 to fiscal 2025 Exxon's revenue compounded at -7.05% a year and Chevron's at -7.85%, with EPS at -20.35% and -28.69%. The positive five-year rates of 12.85% and 14.32% run from the depressed 2020 base and measure recovery rather than growth.

Which is more profitable?

Chevron on margins — 15.37% operating and 9.87% net over the twelve months to June 2026, against Exxon's 12.51% and 8.88%. On returns the two are level, with ROIC of 12.14% versus 11.78%, which is why the quality factor is scored a tie.

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