Petroleo Brasileiro S.A.- Petrobras (NYSE: PBR.A) and TotalFinaElf, (NYSE:TOT) are both large-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Earnings & Valuation

This table compares Petroleo Brasileiro S.A.- Petrobras and TotalFinaElf,’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Petroleo Brasileiro S.A.- Petrobras N/A N/A N/A ($0.47) N/A
TotalFinaElf, $139.27 billion 0.93 $21.80 billion $2.91 17.88

TotalFinaElf, has higher revenue and earnings than Petroleo Brasileiro S.A.- Petrobras. Petroleo Brasileiro S.A.- Petrobras is trading at a lower price-to-earnings ratio than TotalFinaElf,, indicating that it is currently the more affordable of the two stocks.

Dividends

TotalFinaElf, pays an annual dividend of $2.34 per share and has a dividend yield of 4.5%. Petroleo Brasileiro S.A.- Petrobras does not pay a dividend. TotalFinaElf, pays out 80.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

4.6% of Petroleo Brasileiro S.A.- Petrobras shares are held by institutional investors. Comparatively, 5.4% of TotalFinaElf, shares are held by institutional investors. 1.0% of Petroleo Brasileiro S.A.- Petrobras shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Petroleo Brasileiro S.A.- Petrobras has a beta of 2.64, suggesting that its stock price is 164% more volatile than the S&P 500. Comparatively, TotalFinaElf, has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Petroleo Brasileiro S.A.- Petrobras and TotalFinaElf,, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Petroleo Brasileiro S.A.- Petrobras 0 0 0 0 N/A
TotalFinaElf, 0 10 4 1 2.40

TotalFinaElf, has a consensus price target of $54.50, indicating a potential upside of 4.73%.

Profitability

This table compares Petroleo Brasileiro S.A.- Petrobras and TotalFinaElf,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Petroleo Brasileiro S.A.- Petrobras -3.63% 5.00% 1.62%
TotalFinaElf, 4.59% 9.07% 4.11%

Summary

TotalFinaElf, beats Petroleo Brasileiro S.A.- Petrobras on 10 of the 13 factors compared between the two stocks.

About Petroleo Brasileiro S.A.- Petrobras

Petroleo Brasileiro S.A.-Petrobras specializes in the oil, natural gas and energy industry. The Company is engaged in prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks. Its segments include Exploration and Production, which covers the activities of exploration, development and production of crude oil, natural gas liquid and natural gas; Refining, Transportation and Marketing, which covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, and extraction and processing of shale; Gas and Power, which is engaged in transportation and trading of natural gas produced in Brazil and imported natural gas; Biofuels, which covers the activities of production of biodiesel and its co-products, and ethanol-related activities; Distribution, which includes the activities of its subsidiary Petrobras Distribuidora S.A., and Corporate.

About TotalFinaElf,

Total S.A. (Total) is an oil and gas company. The Company has three segments: an Upstream segment, including the activities of the exploration and production of hydrocarbons, and the activities of gas and power; a Refining & Chemicals segment constituting an industrial hub consisting of the activities of refining, petrochemicals and specialty chemicals, and also includes the activities of oil trading and shipping, and a Marketing & Services segment, including the activities of supply and marketing in the field of petroleum products, as well as the activity of New Energies. Its Corporate segment includes holdings operating and financial activities. The Company operates in the renewable energies and power generation sectors. It is engaged in various sectors of oil and gas industry, including upstream (hydrocarbon exploration, development and production) and downstream (refining, petrochemicals, specialty chemicals, trading and shipping of crude oil and petroleum products and marketing).

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