Financial Survey: Braskem (NYSE:BAK) vs. BP (NYSE:BP)

BP (NYSE:BP) and Braskem (NYSE:BAK) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

BP has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Braskem has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.

Profitability

This table compares BP and Braskem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BP	-0.62%	9.51%	2.74%
Braskem	-11.85%	N/A	-1.11%

Institutional and Insider Ownership

11.0% of BP shares are held by institutional investors. 1.0% of BP shares are held by company insiders. Comparatively, 0.0% of Braskem shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares BP and Braskem”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BP	$194.63 billion	0.43	$381.00 million	($0.46)	-69.07
Braskem	$14.36 billion	0.08	-$2.10 billion	($4.19)	-0.73

BP has higher revenue and earnings than Braskem. BP is trading at a lower price-to-earnings ratio than Braskem, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for BP and Braskem, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BP	2	13	1	1	2.06
Braskem	0	2	2	0	2.50

BP presently has a consensus target price of $35.50, indicating a potential upside of 11.74%. Braskem has a consensus target price of $9.75, indicating a potential upside of 220.72%. Given Braskem’s stronger consensus rating and higher probable upside, analysts plainly believe Braskem is more favorable than BP.

Summary

BP beats Braskem on 10 of the 15 factors compared between the two stocks.

About BP

BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. The company was founded in 1908 and is headquartered in London, the United Kingdom.

About Braskem

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells olefins, including ethylene, polymer and chemical grade propylene, butadiene, and butene-1; benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also produces and sells polyethylene (PE) and polypropylene (PP); supplies electricity and other inputs to second-generation producers; produces and sells of PE, including the production of green PE from renewable resources; and produces and sells polyvinyl chloride and caustic soda. The United States and Europe segment produces and sells PP in the United States and Germany. The Mexico segment produces and sells ethylene, high-density PE, and low-density PE in Mexico. It also manufactures, sells, imports, and exports chemicals, petrochemicals, and fules; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.