Evolution Petroleum (NYSE:EPM) vs. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) Head to Head Analysis

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

Dividends

Evolution Petroleum pays an annual dividend of $0.40 per share and has a dividend yield of 6.3%. Petróleo Brasileiro S.A. – Petrobras pays an annual dividend of $2.59 per share and has a dividend yield of 19.6%. Evolution Petroleum pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Petróleo Brasileiro S.A. – Petrobras pays out 59.7% of its earnings in the form of a dividend. Evolution Petroleum has increased its dividend for 2 consecutive years. Petróleo Brasileiro S.A. – Petrobras is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Evolution Petroleum 24.71% 27.12% 19.66%
Petróleo Brasileiro S.A. – Petrobras 23.67% 23.24% 8.67%

Institutional & Insider Ownership

63.3% of Evolution Petroleum shares are owned by institutional investors. Comparatively, 11.9% of Petróleo Brasileiro S.A. – Petrobras shares are owned by institutional investors. 8.8% of Evolution Petroleum shares are owned by 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.

Analyst Ratings

This is a summary of current recommendations for Evolution Petroleum and Petróleo Brasileiro S.A. – Petrobras, as provided by MarketBeat.com.

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

Petróleo Brasileiro S.A. – Petrobras has a consensus target price of $13.46, suggesting a potential upside of 1.64%. Given Petróleo Brasileiro S.A. – Petrobras’ higher possible upside, analysts plainly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than Evolution Petroleum.

Volatility and Risk

Evolution Petroleum has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, 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.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Evolution Petroleum $32.70 million 6.57 -$16.44 million $0.47 13.57
Petróleo Brasileiro S.A. – Petrobras $83.97 billion 1.03 $19.88 billion $4.34 3.05

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

Evolution Petroleum Company Profile (Get Rating)

Evolution Petroleum Corporation, an oil and natural gas company, engages in the development, production, ownership, and management of oil and gas properties in the United States. The company holds interests in a CO2 enhanced oil recovery project in Louisiana's Delhi field. Its Delhi Holt-Bryant Unit covers an area of 13,636 acres located in Northeast Louisiana. The company also holds interests in the Hamilton Dome field covering 5,908 acres located in Wyoming; and Barnett Shale field covering an area of 123,777 acres located in North Texas. Evolution Petroleum Corporation was founded in 2003 and is based in Houston, Texas.

Petróleo Brasileiro S.A. – Petrobras Company Profile (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.

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