Critical Review: PETROLEO BRASIL/S (PBR.A) vs. Anadarko Petroleum (APC)

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Anadarko Petroleum (NYSE:APC) and PETROLEO BRASIL/S (NYSE:PBR.A) are both large-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares Anadarko Petroleum and PETROLEO BRASIL/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anadarko Petroleum 4.60% 10.14% 2.82%
PETROLEO BRASIL/S 7.50% 11.44% 3.85%

Analyst Ratings

This is a summary of recent ratings for Anadarko Petroleum and PETROLEO BRASIL/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anadarko Petroleum 0 5 18 0 2.78
PETROLEO BRASIL/S 0 0 0 0 N/A

Anadarko Petroleum presently has a consensus price target of $75.94, suggesting a potential upside of 71.63%. Given Anadarko Petroleum’s higher probable upside, equities research analysts clearly believe Anadarko Petroleum is more favorable than PETROLEO BRASIL/S.

Risk and Volatility

Anadarko Petroleum has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, PETROLEO BRASIL/S has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Earnings and Valuation

This table compares Anadarko Petroleum and PETROLEO BRASIL/S’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anadarko Petroleum $13.38 billion 1.65 $615.00 million $2.26 19.58
PETROLEO BRASIL/S $95.58 billion 1.00 $7.17 billion N/A N/A

PETROLEO BRASIL/S has higher revenue and earnings than Anadarko Petroleum.

Dividends

Anadarko Petroleum pays an annual dividend of $1.20 per share and has a dividend yield of 2.7%. PETROLEO BRASIL/S pays an annual dividend of $0.36 per share and has a dividend yield of 2.5%. Anadarko Petroleum pays out 53.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

86.2% of Anadarko Petroleum shares are held by institutional investors. Comparatively, 4.4% of PETROLEO BRASIL/S shares are held by institutional investors. 0.5% of Anadarko Petroleum shares are held by insiders. Comparatively, 1.0% of PETROLEO BRASIL/S shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

PETROLEO BRASIL/S beats Anadarko Petroleum on 8 of the 14 factors compared between the two stocks.

About Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.

About PETROLEO BRASIL/S

Petróleo Brasileiro S.A. – Petrobras operates in the oil, natural gas, and energy industries. The company's Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; and sale of surplus crude oil and oil products produced in the natural gas processing plants to the domestic and international markets. Its Refining, Transportation and Marketing segment is involved in refining, logistics, transport, and trading of crude oil and oil products; exportation of ethanol; and extraction and processing of shale, as well as holding interests in petrochemical companies. The company's Gas and Power segment engages in the transportation and trading of natural gas and liquid natural gas; importation of natural gas; generation and trading of electricity; holding interests in transportation and distribution of natural gas, and thermoelectric power plants; and fertilizer business. Its Biofuels segment is involved in the production of biodiesel and its co-products, as well as the equity investment, production, and trading of ethanol, sugar, and electric power generated from sugarcane bagasse. The company's Distribution segment sells oil products, ethanol, and vehicle natural gas in Brazil, as well as distributes oil products in South America. Petróleo Brasileiro S.A. – Petrobras was founded in 1953 and is headquartered in Rio de Janeiro, Brazil.

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