Contrasting Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) and Exxon Mobil (NYSE:XOM)

Exxon Mobil (NYSE:XOM) and Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) are both large-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

61.8% of Exxon Mobil shares are owned by institutional investors. 0.0% of Exxon Mobil shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Exxon Mobil and Petroleo Brasileiro S.A.- Petrobras”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exxon Mobil	$349.59 billion	1.33	$33.68 billion	$7.54	14.31
Petroleo Brasileiro S.A.- Petrobras	$91.42 billion	0.85	$7.53 billion	$1.34	8.97

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

Dividends

Exxon Mobil pays an annual dividend of $3.96 per share and has a dividend yield of 3.7%. Petroleo Brasileiro S.A.- Petrobras pays an annual dividend of $0.99 per share and has a dividend yield of 8.2%. Exxon Mobil pays out 52.5% of its earnings in the form of a dividend. Petroleo Brasileiro S.A.- Petrobras pays out 73.9% 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. Exxon Mobil has raised its dividend for 42 consecutive years.

Risk & Volatility

Exxon Mobil has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Petroleo Brasileiro S.A.- Petrobras has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Exxon Mobil and Petroleo Brasileiro S.A.- Petrobras, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exxon Mobil	1	9	8	2	2.55
Petroleo Brasileiro S.A.- Petrobras	0	1	6	1	3.00

Exxon Mobil presently has a consensus target price of $125.42, indicating a potential upside of 16.27%. Petroleo Brasileiro S.A.- Petrobras has a consensus target price of $17.40, indicating a potential upside of 44.76%. Given Petroleo Brasileiro S.A.- Petrobras’ stronger consensus rating and higher possible upside, analysts clearly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than Exxon Mobil.

Profitability

This table compares Exxon Mobil and Petroleo Brasileiro S.A.- Petrobras’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exxon Mobil	9.49%	12.06%	7.21%
Petroleo Brasileiro S.A.- Petrobras	9.83%	23.98%	8.37%

Summary

Exxon Mobil beats Petroleo Brasileiro S.A.- Petrobras on 11 of the 18 factors compared between the two stocks.

About Exxon Mobil

Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments. The Upstream segment explores for and produces crude oil and natural gas. The Energy Products segment offers fuels, aromatics, catalysts, and licensing services. It sells its products under the Exxon, Esso, and Mobil brands. The Chemical Products segment manufactures and markets petrochemicals, including olefins, polyolefins, and intermediates. The Specialty Products segment offers performance products, including lubricants, basestocks, waxes, synthetics, elastomers, and resins. The company is also involved in the manufacturing, trade, transport, and selling crude oil, natural gas, petroleum products, petrochemicals, and other specialty products in pursuit of lower-emission business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, and lithium. Exxon Mobil Corporation was founded in 1870 and is based in Spring, Texas.

About Petroleo Brasileiro S.A.- Petrobras

Petróleo Brasileiro S.A. – Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company operates through three segments: Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. 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, acquisition, and exports of crude oil; and production of fertilizers, 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; renewable energy businesses; low carbon services; and natural gas processing business, as well as production of biodiesel and its co-products. The company also 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. In addition, it engages in research, development, production, transport, distribution, and trading of energy. Petróleo Brasileiro S.A. – Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.