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 $102.3B against $76.9B — 1.3× the size. Petroleo Brasileiro S.A.- Petrobras trades at the lower P/E: 5.2× against 11.5×. Petroleo Brasileiro S.A.- Petrobras grew revenue faster over the last twelve months: 20.8% against 5.78%. Petroleo Brasileiro S.A.- Petrobras has the higher net margin (24.5% vs 7.92%) and the lower return on invested capital (15.5% vs 46.6%). Both pay a dividend; Petroleo Brasileiro S.A.- Petrobras yields more (14.7% vs 9.74%). 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 11.50 5.16 11.88
P/S 0.90 1.26 1.20
P/B 2.38 1.41 1.56
Price to free cash flow 8.37 6.35 9.74
EV/EBITDA 2.32 3.48 4.94
EV/Sales 0.90 1.74 1.57
Earnings yield 8.70% 19.39% 7.58%
Free cash flow yield 11.95% 15.76% 6.71%

Profitability

Metric EQNR PBR Oil & Gas Integrated median
Gross margin 51.16% 50.75% 39.18%
Operating margin 28.44% 34.15% 14.90%
Net margin 7.92% 24.52% 8.76%
Free cash flow margin 10.72% 19.89% 9.61%
Return on equity 21.28% 30.66% 12.22%
Return on assets 6.47% 11.05% 6.47%
Return on invested capital 46.59% 15.53% 10.61%

Growth

Metric EQNR PBR Oil & Gas Integrated median
Revenue growth (TTM) 5.78% 20.79% 5.63%
EPS growth (last fiscal year) (37.62%) 162.07% —
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 0.56 0.65 0.55
Current ratio 1.18 0.85 1.18
Net debt to EBITDA 0.18 1.23 0.80

Dividend

Metric EQNR PBR Oil & Gas Integrated median
Dividend yield 9.74% 14.73% 5.01%
Payout ratio 0.12 1.25 0.29

Size

Metric EQNR PBR Oil & Gas Integrated median
Market cap 102.28b 76.88b 51.12b

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