Petroleo Brasileiro S.A.- Petrobras (NYSE: PBR.A) and Cenovus Energy (NYSE:CVE) are both large-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Dividends

Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Petroleo Brasileiro S.A.- Petrobras does not pay a dividend. Cenovus Energy pays out 8.9% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Petroleo Brasileiro S.A.- Petrobras and Cenovus Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Petroleo Brasileiro S.A.- Petrobras N/A N/A N/A ($0.47) N/A
Cenovus Energy $12.32 billion 0.97 $1.83 billion $1.80 5.40

Cenovus Energy has higher revenue and earnings than Petroleo Brasileiro S.A.- Petrobras. Petroleo Brasileiro S.A.- Petrobras is trading at a lower price-to-earnings ratio than Cenovus Energy, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Petroleo Brasileiro S.A.- Petrobras has a beta of 2.67, indicating that its share price is 167% more volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Petroleo Brasileiro S.A.- Petrobras and Cenovus Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Petroleo Brasileiro S.A.- Petrobras 0 1 0 0 2.00
Cenovus Energy 2 3 8 0 2.46

Petroleo Brasileiro S.A.- Petrobras currently has a consensus target price of $10.00, indicating a potential upside of Infinity. Cenovus Energy has a consensus target price of $16.79, indicating a potential upside of 72.69%. Given Petroleo Brasileiro S.A.- Petrobras’ higher possible upside, analysts clearly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than Cenovus Energy.

Profitability

This table compares Petroleo Brasileiro S.A.- Petrobras and Cenovus Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Petroleo Brasileiro S.A.- Petrobras -3.63% 5.00% 1.62%
Cenovus Energy 17.89% 3.20% 1.46%

Insider and Institutional Ownership

4.5% of Petroleo Brasileiro S.A.- Petrobras shares are held by institutional investors. Comparatively, 54.8% of Cenovus Energy shares are held by institutional investors. 1.0% of Petroleo Brasileiro S.A.- Petrobras shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Cenovus Energy beats Petroleo Brasileiro S.A.- Petrobras on 8 of the 14 factors compared between the two stocks.

About Petroleo Brasileiro S.A.- Petrobras

Petroleo Brasileiro S.A.-Petrobras specializes in the oil, natural gas and energy industry. The Company is engaged in prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks. Its segments include Exploration and Production, which covers the activities of exploration, development and production of crude oil, natural gas liquid and natural gas; Refining, Transportation and Marketing, which covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, and extraction and processing of shale; Gas and Power, which is engaged in transportation and trading of natural gas produced in Brazil and imported natural gas; Biofuels, which covers the activities of production of biodiesel and its co-products, and ethanol-related activities; Distribution, which includes the activities of its subsidiary Petrobras Distribuidora S.A., and Corporate.

About Cenovus Energy

Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

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