Financial Contrast: Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) versus Barnwell Industries (NYSE:BRN)

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBRGet Rating) and Barnwell Industries (NYSE:BRNGet Rating) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Insider & Institutional Ownership

11.1% of Petróleo Brasileiro S.A. – Petrobras shares are owned by institutional investors. Comparatively, 8.6% of Barnwell Industries shares are owned by institutional investors. 12.9% of Barnwell Industries shares are owned 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Petróleo Brasileiro S.A. – Petrobras and Barnwell Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Petróleo Brasileiro S.A. – Petrobras 0 2 6 0 2.75
Barnwell Industries 0 0 0 0 N/A

Petróleo Brasileiro S.A. – Petrobras currently has a consensus price target of $13.46, indicating a potential downside of 8.52%. Given Petróleo Brasileiro S.A. – Petrobras’ higher possible upside, research analysts clearly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than Barnwell Industries.

Profitability

This table compares Petróleo Brasileiro S.A. – Petrobras and Barnwell Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Petróleo Brasileiro S.A. – Petrobras 23.67% 23.24% 8.67%
Barnwell Industries 35.15% 118.68% 31.10%

Risk & Volatility

Petróleo Brasileiro S.A. – Petrobras has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Barnwell Industries has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Valuation & Earnings

This table compares Petróleo Brasileiro S.A. – Petrobras and Barnwell Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Petróleo Brasileiro S.A. – Petrobras $83.97 billion 1.14 $19.88 billion $3.04 4.84
Barnwell Industries $18.11 million 1.47 $6.25 million $0.76 3.53

Petróleo Brasileiro S.A. – Petrobras has higher revenue and earnings than Barnwell Industries. Barnwell Industries is trading at a lower price-to-earnings ratio than Petróleo Brasileiro S.A. – Petrobras, indicating that it is currently the more affordable of the two stocks.

Summary

Petróleo Brasileiro S.A. – Petrobras beats Barnwell Industries on 8 of the 13 factors compared between the two stocks.

Petróleo Brasileiro S.A. – Petrobras Company Profile (Get Rating)

Petróleo Brasileiro S.A. – Petrobras produce and sells oil and gas in Brazil and internationally. It engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. The company operates through Exploration and Production; Refining, Transportation and Marketing; Gas and Power; and Corporate and Other Businesses segments. The Exploration and Production segment explores for, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the its domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, marketing, 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 Gas and Power segment engages in the logistic and trading of natural gas and electricity; generation of electricity through thermoelectric power plants; holding interests in transportation and distribution of natural gas; and fertilizer production business. The Corporate and Other Businesses segment produces biodiesel and its co-products, and ethanol; and distributes oil products. Petróleo Brasileiro S.A. – Petrobras was founded in 1953 and is headquartered in Rio de Janeiro, Brazil.

Barnwell Industries Company Profile (Get Rating)

Barnwell Industries, Inc. engages in the oil and natural gas exploration, land investment, and contract drilling services. It operates through the following segments: Oil & Natural Gas, Land Investment, and Contract Drilling. The Oil & Natural Gas segment engages in the exploration, development, production and sale of oil and natural gas in Canada. The Land Investment segment invests in land interest in Hawaii. The Contract Drilling segment provides well drilling services and water pumping system installation and repairs in Hawaii. The company was founded by Morton H. Kinzler in 1956 and is headquartered in Honolulu, HI.

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