PETROLEO BRASIL/ADR (NYSE:PBR) and RSP Permian (NYSE:RSPP) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
Institutional & Insider Ownership
6.7% of PETROLEO BRASIL/ADR shares are owned by institutional investors. Comparatively, 89.7% of RSP Permian shares are owned by institutional investors. 15.0% of RSP Permian shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
PETROLEO BRASIL/ADR pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. RSP Permian does not pay a dividend. PETROLEO BRASIL/ADR pays out 14.3% of its earnings in the form of a dividend.
This is a summary of recent recommendations and price targets for PETROLEO BRASIL/ADR and RSP Permian, as provided by MarketBeat.com.
PETROLEO BRASIL/ADR currently has a consensus price target of $16.54, suggesting a potential upside of 16.01%. RSP Permian has a consensus price target of $53.81, suggesting a potential upside of ∞. Given RSP Permian’s higher possible upside, analysts plainly believe RSP Permian is more favorable than PETROLEO BRASIL/ADR.
Valuation and Earnings
This table compares PETROLEO BRASIL/ADR and RSP Permian’s revenue, earnings per share (EPS) and valuation.
RSP Permian has lower revenue, but higher earnings than PETROLEO BRASIL/ADR.
This table compares PETROLEO BRASIL/ADR and RSP Permian’s net margins, return on equity and return on assets.
PETROLEO BRASIL/ADR beats RSP Permian on 6 of the 11 factors compared between the two stocks.
PETROLEO BRASIL/ADR Company Profile
PetrÃ³leo Brasileiro S.A. – Petrobras operates in the oil, natural gas, and energy industries. The company's Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; and sale of surplus crude oil and oil products produced in the natural gas processing plants to the domestic and international markets. Its Refining, Transportation and Marketing segment is involved in refining, logistics, transport, and trading of crude oil and oil products; exportation of ethanol; and extraction and processing of shale, as well as holding interests in petrochemical companies. The company's Gas and Power segment engages in the transportation and trading of natural gas and liquid natural gas; importation of natural gas; generation and trading of electricity; holding interests in transportation and distribution of natural gas, and thermoelectric power plants; and fertilizer business. Its Biofuels segment is involved in the production of biodiesel and its co-products, as well as the equity investment, production, and trading of ethanol, sugar, and electric power generated from sugarcane bagasse. The company's Distribution segment sells oil products, ethanol, and vehicle natural gas in Brazil, as well as distributes oil products in South America. PetrÃ³leo Brasileiro S.A. – Petrobras was founded in 1953 and is headquartered in Rio de Janeiro, Brazil.
RSP Permian Company Profile
RSP Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. It owns interest in contiguous acreage blocks in the core of the Midland Basin primarily in the adjacent counties of Midland, Martin, Andrews, Dawson, Ector, and Glasscock; and in Loving and Winkler counties of the Delaware Basin. RSP Permian, Inc. was founded in 2010 and is headquartered in Dallas, Texas.