Eni SpA (E) vs Petroleo Brasileiro S.A.- Petrobras (PBR)

Eni SpA and Petroleo Brasileiro S.A.- Petrobras are both Oil & Gas Integrated companies. Eni SpA and Petroleo Brasileiro S.A.- Petrobras are of similar size ($80.2B and $76.9B). Petroleo Brasileiro S.A.- Petrobras trades at the lower P/E: 5.2× against 13.7×. Petroleo Brasileiro S.A.- Petrobras grew revenue faster over the last twelve months: 20.8% against 4.16%. Petroleo Brasileiro S.A.- Petrobras has the higher net margin (24.5% vs 6.30%) and the higher return on invested capital (15.5% vs 3.00%). Both pay a dividend; Petroleo Brasileiro S.A.- Petrobras yields more (14.7% vs 6.32%). Across the 23 metrics below, Petroleo Brasileiro S.A.- Petrobras leads on 16 and Eni SpA on 7.

Valuation

Metric E PBR Oil & Gas Integrated median
P/E 13.74 5.16 11.88
P/S 0.81 1.26 1.20
P/B 1.21 1.41 1.56
Price to free cash flow 15.39 6.35 9.74
EV/EBITDA 8.17 3.48 4.94
EV/Sales 1.01 1.74 1.57
Earnings yield 7.28% 19.39% 7.58%
Free cash flow yield 6.50% 15.76% 6.71%

Profitability

Metric E PBR Oil & Gas Integrated median
Gross margin 19.25% 50.75% 39.18%
Operating margin 4.15% 34.15% 14.90%
Net margin 6.30% 24.52% 8.76%
Free cash flow margin 5.29% 19.89% 9.61%
Return on equity 9.80% 30.66% 12.22%
Return on assets 3.82% 11.05% 6.47%
Return on invested capital 3.00% 15.53% 10.61%

Growth

Metric E PBR Oil & Gas Integrated median
Revenue growth (TTM) 4.16% 20.79% 5.63%
EPS growth (last fiscal year) 2.92% 162.07% —
Revenue growth, 5-year CAGR 13.01% 10.69% 12.04%
Net income growth, 5-year CAGR 0.00% 76.66% 0.00%

Health

Metric E PBR Oil & Gas Integrated median
Debt to equity 0.55 0.65 0.55
Current ratio 1.23 0.85 1.18
Net debt to EBITDA 1.09 1.23 0.80

Dividend

Metric E PBR Oil & Gas Integrated median
Dividend yield 6.32% 14.73% 5.01%
Payout ratio 0.33 1.25 0.29

Size

Metric E PBR Oil & Gas Integrated median
Market cap 80.20b 76.88b 51.12b

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