Head-To-Head Contrast: Braskem (NYSE:BAK) vs. YPF Sociedad Anonima (NYSE:YPF)

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

Insider and Institutional Ownership

10.1% of YPF Sociedad Anonima shares are owned by institutional investors. 0.0% of Braskem shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Braskem and YPF Sociedad Anonima”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braskem	$14.36 billion	0.08	-$2.10 billion	($2.53)	-1.17
YPF Sociedad Anonima	$19.29 billion	0.69	$2.35 billion	$3.10	10.87

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

Risk & Volatility

Braskem has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, YPF Sociedad Anonima has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Braskem and YPF Sociedad Anonima, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braskem	0	2	2	0	2.50
YPF Sociedad Anonima	0	3	4	0	2.57

Braskem currently has a consensus price target of $9.75, suggesting a potential upside of 230.51%. YPF Sociedad Anonima has a consensus price target of $43.9167, suggesting a potential upside of 30.28%. Given Braskem’s higher possible upside, equities research analysts plainly believe Braskem is more favorable than YPF Sociedad Anonima.

Profitability

This table compares Braskem and YPF Sociedad Anonima’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Braskem	-7.36%	N/A	-0.30%
YPF Sociedad Anonima	6.32%	12.39%	5.07%

Summary

YPF Sociedad Anonima beats Braskem on 12 of the 14 factors compared between the two stocks.

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.

About YPF Sociedad Anonima

YPF Sociedad Anónima, an energy company, engages in the oil and gas upstream and downstream activities in Argentina. Its upstream operations include the exploration, exploitation, and production of crude oil, and natural gas. The company’s downstream operations include petrochemical production and crude oil refining; transportation and distribution refined and petrochemical products; commercialization of crude oil, petrochemical products, and specialties. Its gas and power operations include transportation, commercialization, and distribution of natural gas; operation of regasification terminals; conditioning, processing, and separation of natural gas; and power generation. The company had interests in oil and gas fields. It also had a retail distribution network and retail service stations. In addition, the company owns and operates refineries, as well as maintains terminal facilities Argentine ports. Further, it participates in power generation plants; offers diesel, fertilizers, lubricants, phytosanitary products, and ensiling bags; and supplies diesel, gasoline, fuel oil, coal, asphalts, paraffin, and sulfur, CO2, decanted oil, and aromatic extract. The company was incorporated in 1977 and is based in Buenos Aires, Argentina.