There was good news for Chevron (NYSE:) and Exxon (NYSE:) this week, as traders reversed the broad sell-off that hit oil stocks in general.

Although Monday’s large sell-off was a sign of nervousness in energy markets, it didn’t affect these companies. For a number of reasons I am still bullish on energy stocks, but in this instance, Chevron is my preferred choice over Exxon.

Chevron has had a relatively tight stock price over the past several months. Since mid-February, it has been trading between $90 to $110 per share. It has rarely strayed from 100 to $5 during that period.

While the stock has been sliding since June of this year, the decline angle is very subtle and hard to see from day to day. (See Chevron stock charts on TipRanks)

Exxon is a fairly similar story. Exxon shares prices have hovered between $50 and $60 since mid-February. While it has surpassed the $60 mark multiple times, such breakouts are not very common. Exxon is on the downward slope since June like Chevron.

Similar to Chevron, Exxon’s angle of descent is extremely narrow. It’s so small that it’s difficult to spot. (See Exxon stock charts on TipRanks)

The recent broader sell-off that hit energy stocks reflected, among other things, deep concerns out of China. Evergrande’s potential disaster (EGRNF), may have resulted in the shutdown of China’s most important real estate operation.

A shutdown like this would cause a drop in demand for iron and fuel. The fears associated with a total shutdown are seeming to be retracing. This is giving energy companies more breathing space.

Wall Street’s Take

Wall Street consensus analysis calls Chevron and Exxon Moderate Buys.

Chevron has an average price target of $123.36, with highs of $145 and lows of $105. Average price targets represent 23.7% potential upside.

Exxon’s average price target is $67.85. It has a high at $90 and low at $57. There is an upside potential of 19.3% for the average Exxon price target.

Comparison

While society has been moving toward more renewable sources of energy, the notion that Chevron and Exxon and those like them will be out of the picture any time soon is laughable.

Their importance might drop but Chevron was already planning for this. Just weeks ago, Chevron announced a deal with Gevo (NASDAQ:) to work together to convert otherwise inedible corn into aviation fuel.

Chevron CEO noted that rising energy costs will be an issue in the near future, as not many energy companies are investing profits into new production. Chevron won’t be investing in solar and wind, however. A recent interview with chairman and CEO Mike Wirth revealed that Chevron plans to put cash back in investors’ hands to “let them plant trees” as they see fit.

Exxon’s long-term value is more vulnerable, however. According to reports, Exxon’s recent Guyana expansion has seen great progress. But, Exxon’s long-term sustainability bets seem lacking. Amid calls for Exxon to “pay up” for causing climate trouble, it’s also been recently spotted shutting down attempted green initiatives.

Chevron’s excellent track record of increasing its quarterly dividends is worth noting. Exxon has a history of increasing its dividends less frequently than other companies. Exxon should be commended for maintaining its dividend well.

Concluding Views

Chevron gets you access to an energy operation that’s likely to benefit in the short-term from higher energy prices, but is also moving to ensure its position down the line. Exxon on the other hand, offers you some short-term benefits but places you at risk for a longer time, and is about half as expensive.

Thus, I’m bullish on both. Although both are fantastic today, I believe the Chevron company is more likely tomorrow to be as great.

Disclosure: Steve Anderson had no position in any securities at the time this article was published.

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