Marathon Oil Corporation (MRO), ConocoPhillips (COP): Which Oil Bargains Can Make You Really Rich?

Which oil stock is the best bet for your portfolio?

Occidental Petroleum is stuck in a catch-22 situation – if it spins off, it is worse off. If it doesn’t, it’s still worse off since Phillips66 and Marathon Petroleum Corp (NYSE:MPC) have been two of the best-performing stocks on the market due to their renewed focus on core production capabilities. This picture might draw investors away from Occidental Petroleum for a long time.

Moving forward, Marathon Oil Corporation (NYSE:MRO) and ConocoPhillips have a unique chance to focus only on their core capabilities and benefit much from that. Based on international commodity prices, the two companies continue to earn significant profits from their broad bases. Marathon Oil Corporation (NYSE:MRO)’s share price has appreciated approximately 50% since its low in June, but based on its weak financials (compared to ConocoPhillips), I believe investors will be better off investing in ConocoPhillips.

ConocoPhillips’ strong dividend and consistent earnings also beat Occidental Petroleum’s because Occidental Petroleum is going through both a power struggle and a growth period, which has been exacerbated by the emergence of both Phillips66 and Marathon Oil Corporation (NYSE:MRO).

Bottom line

ConocoPhillips’ profits dropped by 27% in 1Q13 due to the transition of splitting and the weak international commodity price trend. However, all these events were expected, and the final results were better than the expectations. I expect ConocoPhillips’ share price to grow considerably over the next two years as new projects come online, causing a price appreciation. Investors should consider buying ConocoPhillips for the long run.

The article Which Oil Bargains Can Make You Really Rich? originally appeared on Fool.com.

Marina Avilkina has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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