Petroleo Brasileiro S.A.- Petrobras (PBR.A) vs Transportadora De Gas Sa Ord B (TGS)

Petroleo Brasileiro S.A.- Petrobras and Transportadora De Gas Sa Ord B are both Oil & Gas Integrated companies. Petroleo Brasileiro S.A.- Petrobras is the larger, with a market value of $51.1B against $1.9B — 27.0× the size. Petroleo Brasileiro S.A.- Petrobras trades at the lower P/E: 4.7× against 12.0×. Petroleo Brasileiro S.A.- Petrobras grew revenue faster over the last twelve months: 20.8% against 1.59%. Transportadora De Gas Sa Ord B has the higher net margin (24.7% vs 24.5%) and the higher return on invested capital (16.3% vs 15.5%). Across the 22 metrics below, Petroleo Brasileiro S.A.- Petrobras leads on 14 and Transportadora De Gas Sa Ord B on 8.

Valuation

Metric PBR.A TGS Oil & Gas Integrated median
P/E 4.68 12.01 11.88
P/S 1.15 2.80 1.20
P/B 1.28 1.59 1.56
Price to free cash flow 5.76 29.17 9.74
EV/EBITDA 3.25 4.94 4.94
EV/Sales 1.63 2.69 1.57
Earnings yield 21.38% 8.32% 7.58%
Free cash flow yield 17.37% 3.43% 6.71%

Profitability

Metric PBR.A TGS Oil & Gas Integrated median
Gross margin 50.75% 54.52% 39.18%
Operating margin 34.15% 42.82% 14.90%
Net margin 24.52% 24.70% 8.76%
Free cash flow margin 19.89% 9.61% 9.61%
Return on equity 30.66% 14.71% 12.22%
Return on assets 11.05% 9.43% 6.47%
Return on invested capital 15.53% 16.27% 10.61%

Growth

Metric PBR.A TGS Oil & Gas Integrated median
Revenue growth (TTM) 20.79% 1.59% 5.63%
EPS growth (last fiscal year) 162.07% (15.56%) —
Revenue growth, 5-year CAGR 10.69% 11.65% 12.04%
Net income growth, 5-year CAGR 76.66% 48.47% 0.00%

Health

Metric PBR.A TGS Oil & Gas Integrated median
Debt to equity 0.65 0.44 0.55
Current ratio 0.85 5.11 1.18
Net debt to EBITDA 1.23 (0.11) 0.80

Dividend

Metric PBR.A TGS Oil & Gas Integrated median
Dividend yield 17.06% — 5.01%
Payout ratio 1.25 0.00 0.29

Size

Metric PBR.A TGS Oil & Gas Integrated median
Market cap 51.12b 1.89b 51.12b

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