Analyzing Braskem (NYSE:BAK) and Chevron (NYSE:CVX)

Braskem (NYSE:BAK) and Chevron (NYSE:CVX) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Valuation & Earnings

This table compares Braskem and Chevron”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braskem	$14.36 billion	0.09	-$2.10 billion	($4.19)	-0.74
Chevron	$202.79 billion	1.32	$17.66 billion	$7.77	19.67

Chevron has higher revenue and earnings than Braskem. Braskem is trading at a lower price-to-earnings ratio than Chevron, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Braskem and Chevron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braskem	0	2	2	0	2.50
Chevron	3	6	11	0	2.40

Braskem currently has a consensus price target of $9.75, indicating a potential upside of 213.00%. Chevron has a consensus price target of $164.1111, indicating a potential upside of 7.40%. Given Braskem’s stronger consensus rating and higher possible upside, equities analysts clearly believe Braskem is more favorable than Chevron.

Profitability

This table compares Braskem and Chevron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Braskem	-11.85%	N/A	-1.11%
Chevron	7.02%	9.80%	5.84%

Insider and Institutional Ownership

72.4% of Chevron shares are held by institutional investors. 0.0% of Braskem shares are held by insiders. Comparatively, 0.2% of Chevron shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Braskem has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Chevron has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Summary

Chevron beats Braskem on 11 of the 14 factors compared between the two stocks.

About Braskem

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells olefins, including ethylene, polymer and chemical grade propylene, butadiene, and butene-1; benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also produces and sells polyethylene (PE) and polypropylene (PP); supplies electricity and other inputs to second-generation producers; produces and sells of PE, including the production of green PE from renewable resources; and produces and sells polyvinyl chloride and caustic soda. The United States and Europe segment produces and sells PP in the United States and Germany. The Mexico segment produces and sells ethylene, high-density PE, and low-density PE in Mexico. It also manufactures, sells, imports, and exports chemicals, petrochemicals, and fules; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.

About Chevron

Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant. The Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels, commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives; and transports crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.