Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) & Repsol (OTCMKTS:REPYF) Critical Survey

Repsol (OTCMKTS:REPYF) and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Dividends

Repsol pays an annual dividend of $0.38 per share and has a dividend yield of 2.8%. Petróleo Brasileiro S.A. – Petrobras pays an annual dividend of $0.86 per share and has a dividend yield of 6.1%. Repsol pays out 91.0% 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 34.7% of its earnings in the form of a dividend. Petróleo Brasileiro S.A. – Petrobras is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Repsol and Petróleo Brasileiro S.A. – Petrobras”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repsol	N/A	N/A	N/A	$0.42	32.55
Petróleo Brasileiro S.A. – Petrobras	$102.41 billion	N/A	$24.88 billion	$2.48	5.71

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

Insider and Institutional Ownership

23.8% of Repsol shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Repsol	N/A	N/A	N/A
Petróleo Brasileiro S.A. – Petrobras	16.17%	28.42%	10.53%

Analyst Ratings

This is a summary of recent recommendations and price targets for Repsol and Petróleo Brasileiro S.A. – Petrobras, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repsol	0	0	0	0	N/A
Petróleo Brasileiro S.A. – Petrobras	0	1	6	0	2.86

Petróleo Brasileiro S.A. – Petrobras has a consensus target price of $18.20, suggesting a potential upside of 28.53%. Given Petróleo Brasileiro S.A. – Petrobras’ higher probable upside, analysts clearly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than Repsol.

Summary

Petróleo Brasileiro S.A. – Petrobras beats Repsol on 9 of the 11 factors compared between the two stocks.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company’s Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company’s Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

About Petróleo 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.