Critical Contrast: Petroleo Brasileiro S.A.- Petrobras (PBR.A) and Royal Dutch Shell PLC (RDS.A)
Petroleo Brasileiro S.A.- Petrobras (NYSE: PBR.A) and Royal Dutch Shell PLC (NYSE:RDS.A) are both large-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
This is a breakdown of current ratings and recommmendations for Petroleo Brasileiro S.A.- Petrobras and Royal Dutch Shell PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Petroleo Brasileiro S.A.- Petrobras||0||0||0||0||N/A|
|Royal Dutch Shell PLC||2||3||11||0||2.56|
Royal Dutch Shell PLC has a consensus target price of $57.00, indicating a potential upside of Infinity.
Institutional and Insider Ownership
4.6% of Petroleo Brasileiro S.A.- Petrobras shares are held by institutional investors. Comparatively, 6.3% of Royal Dutch Shell PLC shares are held by institutional investors. 1.0% of Petroleo Brasileiro S.A.- Petrobras shares are held by company insiders. Comparatively, 1.0% of Royal Dutch Shell PLC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Petroleo Brasileiro S.A.- Petrobras and Royal Dutch Shell PLC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Petroleo Brasileiro S.A.- Petrobras||N/A||N/A||N/A||($0.47)||N/A|
|Royal Dutch Shell PLC||N/A||N/A||N/A||$1.96||N/A|
This table compares Petroleo Brasileiro S.A.- Petrobras and Royal Dutch Shell PLC’s 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%|
|Royal Dutch Shell PLC||2.91%||6.04%||2.80%|
Royal Dutch Shell PLC pays an annual dividend of $3.20 per share. Petroleo Brasileiro S.A.- Petrobras does not pay a dividend. Royal Dutch Shell PLC pays out 163.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
Petroleo Brasileiro S.A.- Petrobras has a beta of 2.65, suggesting that its share price is 165% more volatile than the S&P 500. Comparatively, Royal Dutch Shell PLC has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Royal Dutch Shell PLC beats Petroleo Brasileiro S.A.- Petrobras on 7 of the 9 factors compared between the two stocks.
About Petroleo Brasileiro S.A.- Petrobras
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.
About Royal Dutch Shell PLC
The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company’s segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities.
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