Petrobras Argentina (NYSE: PZE) and Cenovus Energy (NYSE:CVE) are both mid-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Risk and Volatility

Petrobras Argentina has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Valuation & Earnings

This table compares Petrobras Argentina and Cenovus Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Petrobras Argentina $1.97 billion 1.46 -$1.00 million N/A N/A
Cenovus Energy $9.09 billion 1.38 -$411.58 million $2.31 4.43

Petrobras Argentina has higher earnings, but lower revenue than Cenovus Energy.

Dividends

Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Petrobras Argentina does not pay a dividend. Cenovus Energy pays out 6.9% of its earnings in the form of a dividend.

Profitability

This table compares Petrobras Argentina and Cenovus Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Petrobras Argentina N/A N/A N/A
Cenovus Energy 17.45% 6.19% 2.81%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Petrobras Argentina and Cenovus Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Petrobras Argentina 0 0 0 0 N/A
Cenovus Energy 2 5 7 0 2.36

Cenovus Energy has a consensus target price of $15.10, indicating a potential upside of 47.46%. Given Cenovus Energy’s higher possible upside, analysts clearly believe Cenovus Energy is more favorable than Petrobras Argentina.

Insider & Institutional Ownership

3.6% of Petrobras Argentina shares are held by institutional investors. Comparatively, 56.8% of Cenovus Energy shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Cenovus Energy beats Petrobras Argentina on 8 of the 12 factors compared between the two stocks.

About Petrobras Argentina

Petrobras Argentina SA, formerly Petrobras Energia SA, is an Argentina-based company primarily engaged in the petroleum refining sector. The Company’s activities are structured in four business segments: Oil and Gas Exploration and Production, including the acquisition, exploration, exploitation and maintenance of oil and gas reserves; Refining and Distribution, processing and marketing of petroleum products; Petrochemicals, comprising the production of styrene, polystyrene, bi-oriented polystyrene (BOPS) and synthetic rubber; as well as Gas and Energy, providing gas distribution, as well as fossil fuel and hydroelectric power energy generation. Its petroleum products include lubricants, diesel fuel, compressed natural gas (CNG) and asphalts, among others. The Company has operations established in Argentina, Bolivia, Ecuador, Venezuela, Mexico and Spain, among others. The Company is owned by Petrobras Participaciones SL. It operates throught Albares Renovables Argentina SA.

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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