EOG Resources (NYSE:EOG) and Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) are both large-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Dividends
EOG Resources pays an annual dividend of $1.50 per share and has a dividend yield of 2.0%. Petróleo Brasileiro S.A. - Petrobras pays an annual dividend of $0.09 per share and has a dividend yield of 1.2%. EOG Resources pays out 30.1% of its earnings in the form of a dividend. Petróleo Brasileiro S.A. - Petrobras pays out 7.6% 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. EOG Resources has raised its dividend for 3 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares EOG Resources and Petróleo Brasileiro S.A. - Petrobras' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| EOG Resources | $17.38 billion | 2.50 | $2.73 billion | $4.98 | 14.98 |
| Petróleo Brasileiro S.A. - Petrobras | $76.59 billion | 0.61 | $10.15 billion | $1.18 | 6.11 |
Petróleo Brasileiro S.A. - Petrobras has higher revenue and earnings than EOG Resources. Petróleo Brasileiro S.A. - Petrobras is trading at a lower price-to-earnings ratio than EOG Resources, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
EOG Resources has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, Petróleo Brasileiro S.A. - Petrobras has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500.
Profitability
This table compares EOG Resources and Petróleo Brasileiro S.A. - Petrobras' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| EOG Resources | -2.47% | 5.86% | 3.38% |
| Petróleo Brasileiro S.A. - Petrobras | -7.72% | -1.32% | -0.36% |
Analyst Ratings
This is a breakdown of current ratings and price targets for EOG Resources and Petróleo Brasileiro S.A. - Petrobras, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| EOG Resources | 0 | 10 | 15 | 0 | 2.60 |
| Petróleo Brasileiro S.A. - Petrobras | 5 | 3 | 0 | 0 | 1.38 |
EOG Resources presently has a consensus price target of $64.8696, suggesting a potential downside of 13.03%. Petróleo Brasileiro S.A. - Petrobras has a consensus price target of $10.75, suggesting a potential upside of 49.10%. Given Petróleo Brasileiro S.A. - Petrobras' higher possible upside, analysts plainly believe Petróleo Brasileiro S.A. - Petrobras is more favorable than EOG Resources.
Insider & Institutional Ownership
87.7% of EOG Resources shares are owned by institutional investors. Comparatively, 9.3% of Petróleo Brasileiro S.A. - Petrobras shares are owned by institutional investors. 0.3% of EOG Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
EOG Resources beats Petróleo Brasileiro S.A. - Petrobras on 12 of the 17 factors compared between the two stocks.
