Woodside Energy vs Ampol: Which ASX oil stock looks better this week?

Woodside Energy vs Ampol shares: which oil stock looks better?

If you’re weighing up Australia’s energy giants, Woodside Energy Group Ltd (ASX: WDS) and Ampol Ltd (ASX: ALD) are two heavy hitters you’ll almost certainly consider. Both are strong, dividend-paying names in oil and gas, but with quite different businesses and investment profiles. Here’s how I think these oil stocks compare for Aussie investors today.

The case for Woodside Energy

Woodside is Australia’s largest independent oil and gas company, operating oil fields and gas projects mainly offshore, plus a global portfolio of assets after merging with BHP’s oil and gas business. Its history dates to 1954, and today it stands as a pillar of the ASX energy sector. The company generates big cashflows from oil and LNG production, and returns much of that to shareholders.

Some standout fundamentals for Woodside:

• Market cap of $60.3 billion makes it a true blue-chip, offering stability and scale.
• Dividend yield sits at a solid 5.14%, fully franked—an important benefit for income-seekers at tax time.
• Reliable track record on dividends, paying fully franked distributions twice a year going back decades, with consistency that’s hard to fault.
• The price-to-earnings (P/E) ratio is 13.9, reflecting a moderate earnings multiple for a sector leader.

Woodside is also Australia’s biggest offshore oil and gas operator, and its assets span both domestic and international markets. The recent BHP petroleum merger has only added to its production scale and diversification.

The case for Ampol

Ampol is best known to most Aussies as the country’s largest petrol station owner and operator, with about 2,000 branded sites nationally. But it’s more than retail fuel: Ampol refines oil at Lytton, supplies fuels, lubricants and chemicals, and operates a growing business in New Zealand and the Philippines.

Here’s what stands out for Ampol:

• Dividend yield of 5.51%—a touch higher than Woodside’s—also fully franked and paid regularly, with a long history of distribution growth.
• A current P/E ratio of just 7.41, suggesting the market is pricing Ampol’s earnings more conservatively than it does for Woodside.
• Year to date, Ampol shares have returned an impressive 46.95%, slightly ahead of Woodside’s 41.37%.
• With a market cap of $10.6 billion, Ampol is mid-cap sized—smaller than Woodside by some margin but still a leader in its patch.

Ampol (formerly Caltex Australia) is unique in that it combines refining and fuel retailing. It’s also moving into low-carbon fuels and international markets, diversifying its traditional business.

Valuation comparison

There are some clear differences in valuation and dividend metrics between these oil stocks. Here’s how they stack up:

Note: When comparing P/E and EPS, Ampol’s much lower P/E stands out even with a higher reported EPS. This suggests the market is more cautious on Ampol, perhaps reflecting its integrated refiner-retailer model, or possible future earnings volatility. Also, please note that the reported P/E ratios may use differing earnings measures to the stated EPS, which could explain any minor inconsistencies.

Recent share price performance

Comparing recent share price activity until 25 September 2026:

• Woodside closed at $31.72, up 0.35% from the previous day. Over the past month, the general trend has seen some volatility, but its year-to-date return is a strong 41.4%.
• Ampol closed at $44.47 on the same date, dipping 0.74% that day, with a standout year-to-date return of 47.0%—even stronger recent momentum than Woodside.

Which is the better buy?

If I had to pick just one oil stock today based strictly on these numbers, my choice would be Ampol. Here’s why: it has a lower P/E ratio, meaning investors are paying less for every dollar of the company’s earnings—an appealing starting point if you want value. Its dividend yield is a touch higher than Woodside’s, with a fully franked payout supported by solid profits. Most impressively, Ampol’s share price has outpaced even Woodside’s in 2026 so far.

Yes, Woodside offers much greater scale, and its business is heavily weighted to upstream oil and LNG, which could mean bigger swings if energy prices spike or slump. But for now, Ampol looks cheaper on fundamental multiples, pays out more in dividends per share, and has delivered even greater price returns this year. Unless I saw something in the news that changed the picture, my pick would be Ampol shares for their blend of income and value right now.

The post Woodside Energy vs Ampol: Which ASX oil stock looks better this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.