Critical Comparison: Petrobras Argentina (PZE) & Petroleo Brasileiro S.A.- Petrobras (PBR)
Petrobras Argentina (NYSE: PZE) and Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.
This table compares Petrobras Argentina and Petroleo Brasileiro S.A.- Petrobras’ 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%|
Earnings and Valuation
This table compares Petrobras Argentina and Petroleo Brasileiro S.A.- Petrobras’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Petrobras Argentina||$1.61 billion||1.61||$333.39 million||N/A||N/A|
|Petroleo Brasileiro S.A.- Petrobras||$80.05 billion||0.82||$32.60 billion||($0.47)||-21.43|
Petroleo Brasileiro S.A.- Petrobras has higher revenue and earnings than Petrobras Argentina.
Risk and Volatility
Petrobras Argentina has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Petroleo Brasileiro S.A.- Petrobras has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500.
This is a summary of current recommendations for Petrobras Argentina and Petroleo Brasileiro S.A.- Petrobras, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Petroleo Brasileiro S.A.- Petrobras||1||4||6||0||2.45|
Petroleo Brasileiro S.A.- Petrobras has a consensus price target of $11.13, indicating a potential upside of 10.49%. Given Petroleo Brasileiro S.A.- Petrobras’ higher possible upside, analysts plainly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than Petrobras Argentina.
Insider and Institutional Ownership
3.4% of Petrobras Argentina shares are held by institutional investors. Comparatively, 5.7% of Petroleo Brasileiro S.A.- Petrobras shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Petroleo Brasileiro S.A.- Petrobras beats Petrobras Argentina on 8 of the 10 factors compared between the two stocks.
Petrobras Argentina Company Profile
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.
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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