The Hong Kong and China Gas (OTCMKTS:HOKCY) and Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) are both large-cap utilities companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
Earnings and Valuation
This table compares The Hong Kong and China Gas and Petróleo Brasileiro S.A. - Petrobras' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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The Hong Kong and China Gas | $5.19 billion | 5.55 | $901.41 million | N/A | N/A |
Petróleo Brasileiro S.A. - Petrobras | $76.59 billion | 0.71 | $10.15 billion | $1.18 | 7.03 |
Petróleo Brasileiro S.A. - Petrobras has higher revenue and earnings than The Hong Kong and China Gas.
Dividends
The Hong Kong and China Gas pays an annual dividend of $0.03 per share and has a dividend yield of 1.9%. Petróleo Brasileiro S.A. - Petrobras pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. Petróleo Brasileiro S.A. - Petrobras pays out 7.6% of its earnings in the form of a dividend. Petróleo Brasileiro S.A. - Petrobras has increased its dividend for 1 consecutive years.
Volatility and Risk
The Hong Kong and China Gas has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, 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.
Analyst Recommendations
This is a breakdown of recent recommendations for The Hong Kong and China Gas and Petróleo Brasileiro S.A. - Petrobras, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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The Hong Kong and China Gas | 1 | 0 | 0 | 0 | 1.00 |
Petróleo Brasileiro S.A. - Petrobras | 4 | 4 | 0 | 0 | 1.50 |
Petróleo Brasileiro S.A. - Petrobras has a consensus price target of $10.75, indicating a potential upside of 29.67%. Given Petróleo Brasileiro S.A. - Petrobras' stronger consensus rating and higher possible upside, analysts plainly believe Petróleo Brasileiro S.A. - Petrobras is more favorable than The Hong Kong and China Gas.
Insider & Institutional Ownership
0.0% of The Hong Kong and China Gas shares are held by institutional investors. Comparatively, 9.3% of Petróleo Brasileiro S.A. - Petrobras shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares The Hong Kong and China Gas and Petróleo Brasileiro S.A. - Petrobras' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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The Hong Kong and China Gas | N/A | N/A | N/A |
Petróleo Brasileiro S.A. - Petrobras | -7.72% | -1.32% | -0.36% |
Summary
Petróleo Brasileiro S.A. - Petrobras beats The Hong Kong and China Gas on 7 of the 13 factors compared between the two stocks.