Equinor ASA (EQNR) vs Petroleo Brasileiro S.A.- Petrobras (PBR)

Equinor ASA and Petroleo Brasileiro S.A.- Petrobras are both Oil & Gas Integrated companies. Equinor ASA is the larger, with a market value of $101.7B against $70.0B — 1.5× the size. Petroleo Brasileiro S.A.- Petrobras trades at the lower P/E: 4.8× against 8.8×. Petroleo Brasileiro S.A.- Petrobras grew revenue faster over the last twelve months: 20.8% against 11.8%. Petroleo Brasileiro S.A.- Petrobras has the higher net margin (24.5% vs 9.71%) and the lower return on invested capital (15.5% vs 54.5%). Both pay a dividend; Petroleo Brasileiro S.A.- Petrobras yields more (3.83% vs 3.56%). Across the 23 metrics below, Petroleo Brasileiro S.A.- Petrobras leads on 14 and Equinor ASA on 9.

Valuation

Metric EQNR PBR Oil & Gas Integrated median
P/E 8.84 4.77 8.84
P/S 0.83 1.17 1.10
P/B 2.25 1.31 1.43
Price to free cash flow 7.34 5.87 8.19
EV/EBITDA 1.99 3.29 4.43
EV/Sales 0.83 1.65 1.48
Earnings yield 11.31% 20.97% 9.76%
Free cash flow yield 13.62% 17.04% 7.35%

Profitability

Metric EQNR PBR Oil & Gas Integrated median
Gross margin 53.58% 50.75% 39.93%
Operating margin 32.26% 34.15% 17.07%
Net margin 9.71% 24.52% 10.24%
Free cash flow margin 11.34% 19.89% 11.16%
Return on equity 27.58% 30.66% 14.86%
Return on assets 8.34% 11.05% 7.07%
Return on invested capital 54.52% 15.53% 12.85%

Growth

Metric EQNR PBR Oil & Gas Integrated median
Revenue growth (TTM) 11.76% 20.79% 13.45%
EPS growth (last fiscal year) (37.62%) 162.07% (14.54%)
Revenue growth, 5-year CAGR 18.37% 10.69% 12.04%
Net income growth, 5-year CAGR 0.00% 76.66% 0.00%

Health

Metric EQNR PBR Oil & Gas Integrated median
Debt to equity 0.53 0.65 0.53
Current ratio 1.16 0.85 1.19
Net debt to EBITDA 0.18 1.23 0.80

Dividend

Metric EQNR PBR Oil & Gas Integrated median
Dividend yield 3.56% 3.83% 3.83%
Payout ratio 0.32 0.18 0.34

Size

Metric EQNR PBR Oil & Gas Integrated median
Market cap 101.70b 69.96b 47.17b

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