Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) and Canadian Natural Resources (NYSE:CNQ) 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 risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
Profitability
This table compares Petróleo Brasileiro S.A. - Petrobras and Canadian Natural Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Petróleo Brasileiro S.A. - Petrobras | -7.72% | -1.32% | -0.36% |
| Canadian Natural Resources | -3.03% | -1.74% | -0.76% |
Dividends
Petróleo Brasileiro S.A. - Petrobras pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. Canadian Natural Resources pays an annual dividend of $1.31 per share and has a dividend yield of 4.2%. Petróleo Brasileiro S.A. - Petrobras pays out 7.6% of its earnings in the form of a dividend. Canadian Natural Resources pays out 57.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Petróleo Brasileiro S.A. - Petrobras has increased its dividend for 1 consecutive years and Canadian Natural Resources has increased its dividend for 1 consecutive years.
Analyst Ratings
This is a summary of recent recommendations and price targets for Petróleo Brasileiro S.A. - Petrobras and Canadian Natural Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Petróleo Brasileiro S.A. - Petrobras | 4 | 4 | 0 | 0 | 1.50 |
| Canadian Natural Resources | 0 | 4 | 14 | 0 | 2.78 |
Petróleo Brasileiro S.A. - Petrobras presently has a consensus price target of $10.75, indicating a potential upside of 29.67%. Canadian Natural Resources has a consensus price target of $41.0556, indicating a potential upside of 33.08%. Given Canadian Natural Resources' stronger consensus rating and higher possible upside, analysts clearly believe Canadian Natural Resources is more favorable than Petróleo Brasileiro S.A. - Petrobras.
Risk & Volatility
Petróleo Brasileiro S.A. - Petrobras has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.
Insider and Institutional Ownership
9.3% of Petróleo Brasileiro S.A. - Petrobras shares are held by institutional investors. Comparatively, 66.5% of Canadian Natural Resources shares are held by institutional investors. 5.0% of Canadian Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Petróleo Brasileiro S.A. - Petrobras and Canadian Natural Resources' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Petróleo Brasileiro S.A. - Petrobras | $76.59 billion | 0.71 | $10.15 billion | $1.18 | 7.03 |
| Canadian Natural Resources | $18.38 billion | 1.99 | $4.08 billion | $2.27 | 13.59 |
Petróleo Brasileiro S.A. - Petrobras has higher revenue and earnings than Canadian Natural Resources. Petróleo Brasileiro S.A. - Petrobras is trading at a lower price-to-earnings ratio than Canadian Natural Resources, indicating that it is currently the more affordable of the two stocks.
Summary
Canadian Natural Resources beats Petróleo Brasileiro S.A. - Petrobras on 9 of the 16 factors compared between the two stocks.
