Ecopetrol S.A. (EC) vs Petroleo Brasileiro S.A.- Petrobras (PBR)

Ecopetrol S.A. and Petroleo Brasileiro S.A.- Petrobras are both Oil & Gas Integrated companies. Petroleo Brasileiro S.A.- Petrobras is the larger, with a market value of $70.0B against $32.0B — 2.2× the size. Petroleo Brasileiro S.A.- Petrobras trades at the lower P/E: 4.8× against 8.3×. Petroleo Brasileiro S.A.- Petrobras grew revenue faster over the last twelve months: 20.8% against −76.8%. Petroleo Brasileiro S.A.- Petrobras has the higher net margin (24.5% vs 11.7%) and the higher return on invested capital (15.5% vs 9.16%). Both pay a dividend; Ecopetrol S.A. yields more (4.16% vs 3.83%). Across the 23 metrics below, Petroleo Brasileiro S.A.- Petrobras leads on 20 and Ecopetrol S.A. on 3.

Valuation

Metric EC PBR Oil & Gas Integrated median
P/E 8.26 4.77 8.84
P/S 0.99 1.17 1.10
P/B 1.50 1.31 1.43
Price to free cash flow 6.46 5.87 8.19
EV/EBITDA 4.73 3.29 4.43
EV/Sales 1.86 1.65 1.48
Earnings yield 12.11% 20.97% 9.76%
Free cash flow yield 15.47% 17.04% 7.35%

Profitability

Metric EC PBR Oil & Gas Integrated median
Gross margin 36.64% 50.75% 39.93%
Operating margin 27.60% 34.15% 17.07%
Net margin 11.72% 24.52% 10.24%
Free cash flow margin 15.34% 19.89% 11.16%
Return on equity 0.00% 30.66% 14.86%
Return on assets 5.27% 11.05% 7.07%
Return on invested capital 9.16% 15.53% 12.85%

Growth

Metric EC PBR Oil & Gas Integrated median
Revenue growth (TTM) (76.82%) 20.79% 13.45%
EPS growth (last fiscal year) (24.10%) 162.07% (14.54%)
Revenue growth, 5-year CAGR (18.18%) 10.69% 12.04%
Net income growth, 5-year CAGR 0.34% 76.66% 0.00%

Health

Metric EC PBR Oil & Gas Integrated median
Debt to equity 0.96 0.65 0.53
Current ratio 1.51 0.85 1.19
Net debt to EBITDA 2.26 1.23 0.80

Dividend

Metric EC PBR Oil & Gas Integrated median
Dividend yield 4.16% 3.83% 3.83%
Payout ratio 0.34 0.18 0.34

Size

Metric EC PBR Oil & Gas Integrated median
Market cap 31.95b 69.96b 47.17b

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