Head to Head Comparison: Ecopetrol (NYSE:EC) and Braskem (NYSE:BAK)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ecopetrol	$32.80 billion	0.57	$15.23 billion	$1.31	6.97
Braskem	$14.36 billion	0.07	-$2.10 billion	($2.53)	-0.98

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ecopetrol	1	2	1	0	2.00
Braskem	1	4	0	0	1.80

Ecopetrol currently has a consensus target price of $11.75, indicating a potential upside of 28.77%. Braskem has a consensus target price of $4.40, indicating a potential upside of 77.78%. Given Braskem’s higher possible upside, analysts plainly believe Braskem is more favorable than Ecopetrol.

Volatility & Risk

Ecopetrol has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Braskem has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ecopetrol	8.75%	5.15%	1.82%
Braskem	-7.36%	N/A	-0.30%

Summary

Ecopetrol beats Braskem on 10 of the 12 factors compared between the two stocks.

About Ecopetrol

Ecopetrol S.A. operates as an integrated energy company. The company operates through four segments: Exploration and Production; Transport and Logistics; Refining, Petrochemical and Biofuels; and Electric Power Transmission and Toll Roads Concessions. It engages in the exploration and production of oil and gas; transportation of crude oil, motor fuels, fuel oil, and other refined products, including diesel, jet, and biofuels; processing and refining crude oil; distribution of natural gas and LPG; sale of refined and petrochemical products; supplying of electric power transmission services; design, development, construction, operation, and maintenance of road and energy infrastructure projects; and supplying of information technology and telecommunications services. As of December 31, 2022, the company had approximately 9,127 kilometers of crude oil and multi-purpose pipelines. It also produces and commercializes polypropylene resins and compounds, and masterbatches; and offers industrial service sales to customers and specialized management services. It has operations in Colombia, the United States, Asia, Central America and the Caribbean, Europe, and South America. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was incorporated in 1948 and is headquartered in Bogotá, Colombia.

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.