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 $94.1B against $36.4B — 2.6× the size. Petroleo Brasileiro S.A.- Petrobras trades at the lower P/E: 6.6× against 14.2×. 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 (3.69% vs 2.78%). Across the 23 metrics below, Petroleo Brasileiro S.A.- Petrobras leads on 16 and Ecopetrol S.A. on 7.

Valuation

Metric EC PBR Oil & Gas Integrated median
P/E 14.21 6.57 12.62
P/S 1.14 1.61 1.29
P/B 1.72 1.80 1.62
Price to free cash flow 7.41 8.08 10.23
EV/EBITDA 5.10 4.17 4.86
EV/Sales 2.00 2.09 1.52
Earnings yield 7.04% 15.23% 7.04%
Free cash flow yield 13.49% 12.37% 6.09%

Profitability

Metric EC PBR Oil & Gas Integrated median
Gross margin 36.64% 50.75% 39.18%
Operating margin 27.60% 34.15% 14.90%
Net margin 11.72% 24.52% 8.88%
Free cash flow margin 15.34% 19.89% 9.61%
Return on equity 0.00% 30.66% 12.22%
Return on assets 5.27% 11.05% 6.47%
Return on invested capital 9.16% 15.53% 10.61%

Growth

Metric EC PBR Oil & Gas Integrated median
Revenue growth (TTM) (76.82%) 20.79% 5.63%
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 0.55
Current ratio 1.51 0.85 1.18
Net debt to EBITDA 2.26 1.23 0.80

Dividend

Metric EC PBR Oil & Gas Integrated median
Dividend yield 3.69% 2.78% 3.24%
Payout ratio 0.52 0.18 0.52

Size

Metric EC PBR Oil & Gas Integrated median
Market cap 36.39b 94.14b 58.96b

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