Critical Analysis: Universal Energy (OTCMKTS:UVSE) and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

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

Volatility & Risk

Petróleo Brasileiro S.A. – Petrobras has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Universal Energy has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Profitability

This table compares Petróleo Brasileiro S.A. – Petrobras and Universal Energy’s 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%
Universal Energy N/A N/A N/A

Insider & Institutional Ownership

11.9% of Petróleo Brasileiro S.A. – Petrobras shares are held by institutional investors. 0.2% of Universal Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Petróleo Brasileiro S.A. – Petrobras and Universal Energy, as reported by MarketBeat.

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

Petróleo Brasileiro S.A. – Petrobras currently has a consensus target price of $13.46, suggesting a potential upside of 1.11%.

Earnings & Valuation

This table compares Petróleo Brasileiro S.A. – Petrobras and Universal Energy’s 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 $83.97 billion 1.03 $19.88 billion $3.04 4.38
Universal Energy N/A N/A N/A N/A N/A

Petróleo Brasileiro S.A. – Petrobras has higher revenue and earnings than Universal Energy.

Summary

Petróleo Brasileiro S.A. – Petrobras beats Universal Energy on 7 of the 8 factors compared between the two stocks.

About Petróleo Brasileiro S.A. – Petrobras (Get Rating)

Petróleo Brasileiro S.A. – Petrobras explores for, produces, and sells oil and gas in Brazil and internationally. The company operates through Exploration and Production; Refining, Transportation and Marketing; Gas and Power; and Corporate and Other Businesses segments. 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 Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the 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 is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; holding interests in transportation and distribution of natural gas; and fertilizer production and natural gas processing 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 incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.

About Universal Energy (Get Rating)

Universal Energy Corp., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil and natural gas in the United States and Canada. It has 13 oil and gas lease projects. The company was founded in 2002 and is based in Lake Mary, Florida.

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