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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TotalFinaElf, 0 10 4 1 2.40
Petroleo Brasileiro S.A.- Petrobras 1 5 6 0 2.42

TotalFinaElf, currently has a consensus target price of $54.50, indicating a potential upside of 4.73%. Petroleo Brasileiro S.A.- Petrobras has a consensus target price of $10.81, indicating a potential upside of 16.34%. Given Petroleo Brasileiro S.A.- Petrobras’ stronger consensus rating and higher possible upside, analysts plainly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than TotalFinaElf,.

Risk & Volatility

TotalFinaElf, has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Petroleo Brasileiro S.A.- Petrobras has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500.

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.

Profitability

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

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

Insider & Institutional Ownership

5.4% of TotalFinaElf, shares are owned by institutional investors. Comparatively, 5.7% of Petroleo Brasileiro S.A.- Petrobras shares are owned by institutional investors. 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.

Valuation & Earnings

This table compares TotalFinaElf, and Petroleo Brasileiro S.A.- Petrobras’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TotalFinaElf, $139.27 billion 0.93 $21.80 billion $2.91 17.88
Petroleo Brasileiro S.A.- Petrobras $82.85 billion 0.73 $32.86 billion ($0.47) -19.77

Petroleo Brasileiro S.A.- Petrobras has higher revenue, but lower earnings than TotalFinaElf,. 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.

Summary

TotalFinaElf, beats Petroleo Brasileiro S.A.- Petrobras on 8 of the 15 factors compared between the two stocks.

TotalFinaElf, Company Profile

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).

Petroleo Brasileiro S.A.- Petrobras Company Profile

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.

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