Petrobras Argentina (PZE) versus TotalFinaElf, (TOT) Critical Review
Petrobras Argentina (NYSE: PZE) and TotalFinaElf, (NYSE:TOT) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Valuation and Earnings
This table compares Petrobras Argentina and TotalFinaElf,’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Petrobras Argentina||$1.60 billion||1.59||$331.78 million||N/A||N/A|
|TotalFinaElf,||$139.27 billion||0.93||$21.80 billion||$2.91||17.93|
TotalFinaElf, has higher revenue and earnings than Petrobras Argentina.
Volatility and Risk
Petrobras Argentina has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, TotalFinaElf, has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
This table compares Petrobras Argentina and TotalFinaElf,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TotalFinaElf, pays an annual dividend of $2.34 per share and has a dividend yield of 4.5%. Petrobras Argentina 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
3.4% of Petrobras Argentina shares are owned by institutional investors. Comparatively, 5.4% of TotalFinaElf, shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Petrobras Argentina and TotalFinaElf,, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TotalFinaElf, has a consensus price target of $54.50, suggesting a potential upside of 4.43%. Given TotalFinaElf,’s higher probable upside, analysts clearly believe TotalFinaElf, is more favorable than Petrobras Argentina.
TotalFinaElf, beats Petrobras Argentina on 10 of the 13 factors compared between the two stocks.
About Petrobras Argentina
Petrobras Argentina SA, formerly Petrobras Energia SA, is an Argentina-based company primarily engaged in the petroleum refining sector. The Company’s activities are structured in four business segments: Oil and Gas Exploration and Production, including the acquisition, exploration, exploitation and maintenance of oil and gas reserves; Refining and Distribution, processing and marketing of petroleum products; Petrochemicals, comprising the production of styrene, polystyrene, bi-oriented polystyrene (BOPS) and synthetic rubber; as well as Gas and Energy, providing gas distribution, as well as fossil fuel and hydroelectric power energy generation. Its petroleum products include lubricants, diesel fuel, compressed natural gas (CNG) and asphalts, among others. The Company has operations established in Argentina, Bolivia, Ecuador, Venezuela, Mexico and Spain, among others. The Company is owned by Petrobras Participaciones SL. It operates throught Albares Renovables Argentina SA.
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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