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

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 $51.1B against $33.7B — 1.5× the size. Petroleo Brasileiro S.A.- Petrobras trades at the lower P/E: 4.7× against 13.2×. Petroleo Brasileiro S.A.- Petrobras grew revenue faster over the last twelve months: 20.8% against −83.7%. Petroleo Brasileiro S.A.- Petrobras has the higher net margin (24.5% vs 8.76%) and the higher return on invested capital (15.5% vs 8.20%). Both pay a dividend; Ecopetrol S.A. yields more (18.0% vs 17.1%). Across the 23 metrics below, Petroleo Brasileiro S.A.- Petrobras leads on 21 and Ecopetrol S.A. on 2.

Valuation

Metric EC PBR.A Oil & Gas Integrated median
P/E 13.19 4.68 11.88
P/S 1.43 1.15 1.20
P/B 1.60 1.28 1.56
Price to free cash flow 7.76 5.76 9.74
EV/EBITDA 6.26 3.25 4.94
EV/Sales 2.24 1.63 1.57
Earnings yield 7.58% 21.38% 7.58%
Free cash flow yield 12.89% 17.37% 6.71%

Profitability

Metric EC PBR.A Oil & Gas Integrated median
Gross margin 31.44% 50.75% 39.18%
Operating margin 22.29% 34.15% 14.90%
Net margin 8.76% 24.52% 8.76%
Free cash flow margin 18.44% 19.89% 9.61%
Return on equity 2.86% 30.66% 12.22%
Return on assets 1.09% 11.05% 6.47%
Return on invested capital 8.20% 15.53% 10.61%

Growth

Metric EC PBR.A Oil & Gas Integrated median
Revenue growth (TTM) (83.68%) 20.79% 5.63%
EPS growth (last fiscal year) (24.10%) 162.07% —
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.A Oil & Gas Integrated median
Debt to equity 1.02 0.65 0.55
Current ratio 1.55 0.85 1.18
Net debt to EBITDA 2.26 1.23 0.80

Dividend

Metric EC PBR.A Oil & Gas Integrated median
Dividend yield 18.03% 17.06% 5.01%
Payout ratio 0.39 1.25 0.29

Size

Metric EC PBR.A Oil & Gas Integrated median
Market cap 33.65b 51.12b 51.12b

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