Some investors and commentators treat the international oil majors as an
undifferentiated mass, suggesting that investors need only follow
dividend yields and/or PE ratios to find the best bargains at a given point in time. Total (NYSE:TOT)
offers a good example of why that's not a very good approach. While
Total's aggressive exploration program could offer some upside to
production and profits down the road, the company's leverage to high oil
prices and lower margins/returns underline a riskier business model
that ought to trade at some discount to peers.
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