BP p.l.c. (BP) vs Petroleo Brasileiro S.A.- Petrobras (PBR)

BP p.l.c. and Petroleo Brasileiro S.A.- Petrobras are both Oil & Gas Integrated companies. BP p.l.c. is the larger, with a market value of $114.5B against $76.9B — 1.5× the size. Petroleo Brasileiro S.A.- Petrobras trades at the lower P/E: 5.2× against 21.1×. Petroleo Brasileiro S.A.- Petrobras grew revenue faster over the last twelve months: 20.8% against 14.9%. Petroleo Brasileiro S.A.- Petrobras has the higher net margin (24.5% vs 2.46%) and the higher return on invested capital (15.5% vs 15.1%). Both pay a dividend; Petroleo Brasileiro S.A.- Petrobras yields more (14.7% vs 5.01%). Across the 23 metrics below, Petroleo Brasileiro S.A.- Petrobras leads on 17 and BP p.l.c. on 6.

Valuation

Metric BP PBR Oil & Gas Integrated median
P/E 21.07 5.16 11.88
P/S 0.52 1.26 1.20
P/B 1.51 1.41 1.56
Price to free cash flow 6.70 6.35 9.74
EV/EBITDA 3.26 3.48 4.94
EV/Sales 0.58 1.74 1.57
Earnings yield 4.75% 19.39% 7.58%
Free cash flow yield 14.93% 15.76% 6.71%

Profitability

Metric BP PBR Oil & Gas Integrated median
Gross margin 29.15% 50.75% 39.18%
Operating margin 9.80% 34.15% 14.90%
Net margin 2.46% 24.52% 8.76%
Free cash flow margin 7.83% 19.89% 9.61%
Return on equity 7.29% 30.66% 12.22%
Return on assets 1.87% 11.05% 6.47%
Return on invested capital 15.06% 15.53% 10.61%

Growth

Metric BP PBR Oil & Gas Integrated median
Revenue growth (TTM) 14.85% 20.79% 5.63%
EPS growth (last fiscal year) (85.71%) 162.07% —
Revenue growth, 5-year CAGR 12.04% 10.69% 12.04%
Net income growth, 5-year CAGR 0.00% 76.66% 0.00%

Health

Metric BP PBR Oil & Gas Integrated median
Debt to equity 0.76 0.65 0.55
Current ratio 1.27 0.85 1.18
Net debt to EBITDA 0.53 1.23 0.80

Dividend

Metric BP PBR Oil & Gas Integrated median
Dividend yield 5.01% 14.73% 5.01%
Payout ratio 0.25 1.25 0.29

Size

Metric BP PBR Oil & Gas Integrated median
Market cap 114.45b 76.88b 51.12b

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