Petroleo Brasileiro S.A.- Petrobras (PBR) & QEP Resources (QEP) Critical Review
Petroleo Brasileiro S.A.- Petrobras (NYSE: PBR) and QEP Resources (NYSE:QEP) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Valuation & Earnings
This table compares Petroleo Brasileiro S.A.- Petrobras and QEP Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Petroleo Brasileiro S.A.- Petrobras||$82.85 billion||0.79||$32.86 billion||($0.47)||-21.45|
|QEP Resources||$1.59 billion||1.20||$822.60 million||($0.26)||-30.62|
Petroleo Brasileiro S.A.- Petrobras has higher revenue and earnings than QEP Resources. QEP Resources is trading at a lower price-to-earnings ratio than Petroleo Brasileiro S.A.- Petrobras, indicating that it is currently the more affordable of the two stocks.
This table compares Petroleo Brasileiro S.A.- Petrobras and QEP Resources’ 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%|
Institutional & Insider Ownership
5.7% of Petroleo Brasileiro S.A.- Petrobras shares are held by institutional investors. Comparatively, 93.2% of QEP Resources shares are held by institutional investors. 1.4% of QEP Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Petroleo Brasileiro S.A.- Petrobras has a beta of 2.43, suggesting that its share price is 143% more volatile than the S&P 500. Comparatively, QEP Resources has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Petroleo Brasileiro S.A.- Petrobras and QEP Resources, 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 presently has a consensus target price of $10.81, suggesting a potential upside of 7.23%. QEP Resources has a consensus target price of $16.71, suggesting a potential upside of 109.98%. Given QEP Resources’ stronger consensus rating and higher possible upside, analysts plainly believe QEP Resources is more favorable than Petroleo Brasileiro S.A.- Petrobras.
QEP Resources beats Petroleo Brasileiro S.A.- Petrobras on 8 of the 14 factors compared between the two stocks.
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.
QEP Resources Company Profile
QEP Resources, Inc. is an independent crude oil and natural gas exploration and production company. The Company focuses on two regions of the United States: the Northern Region (primarily in North Dakota, Wyoming and Utah) and the Southern Region (primarily in Texas and Louisiana). The Company conducts exploration and production activities in North America’s hydrocarbon resource plays. The Company has an inventory of developed and undeveloped drilling locations in the Permian Basin in western Texas, the Williston Basin in North Dakota, Haynesville/Cotton Valley in northwestern Louisiana, the Pinedale Anticline (Pinedale) in western Wyoming, the Uinta Basin in eastern Utah and other properties in Wyoming, Utah and Colorado. It sells gas volumes to wholesale marketers, industrial users, local distribution companies and utilities. It sells oil and natural gas liquid (NGL) volumes to refiners, marketers and other companies.
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