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

Analyst Recommendations

This is a breakdown of recent ratings for ENI S.p.A. and Petroleo Brasileiro S.A.- Petrobras, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENI S.p.A. 5 3 4 0 1.92
Petroleo Brasileiro S.A.- Petrobras 0 0 0 0 N/A

ENI S.p.A. currently has a consensus target price of $16.00, indicating a potential downside of 51.22%.

Dividends

ENI S.p.A. pays an annual dividend of $1.31 per share and has a dividend yield of 4.0%. Petroleo Brasileiro S.A.- Petrobras does not pay a dividend. ENI S.p.A. pays out 319.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ENI S.p.A. $75.34 billion 0.79 $13.30 billion $0.41 80.00
Petroleo Brasileiro S.A.- Petrobras N/A N/A N/A ($0.47) N/A

ENI S.p.A. 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 ENI S.p.A., indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

ENI S.p.A. has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Petroleo Brasileiro S.A.- Petrobras has a beta of 2.65, meaning that its share price is 165% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
ENI S.p.A. 1.14% 2.23% 0.94%
Petroleo Brasileiro S.A.- Petrobras -3.63% 5.00% 1.62%

Institutional & Insider Ownership

1.7% of ENI S.p.A. shares are held by institutional investors. Comparatively, 4.6% of Petroleo Brasileiro S.A.- Petrobras 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 company will outperform the market over the long term.

ENI S.p.A. Company Profile

Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company’s segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.

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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