Petrobras Argentina (PZE) versus Royal Dutch Shell PLC (NYSE:RDS.A) Financial Analysis

Petrobras Argentina (NYSE: PZE) and Royal Dutch Shell PLC (NYSE:RDS.A) 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 profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Petrobras Argentina and Royal Dutch Shell PLC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Petrobras Argentina $1.58 billion 1.58 $327.52 million N/A N/A
Royal Dutch Shell PLC N/A N/A N/A $1.96 N/A

Petrobras Argentina has higher revenue and earnings than Royal Dutch Shell PLC.

Dividends

Royal Dutch Shell PLC pays an annual dividend of $3.20 per share. Petrobras Argentina does not pay a dividend. Royal Dutch Shell PLC pays out 163.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

3.1% of Petrobras Argentina shares are held by institutional investors. Comparatively, 6.3% of Royal Dutch Shell PLC shares are held by institutional investors. 1.0% of Royal Dutch Shell PLC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Petrobras Argentina and Royal Dutch Shell PLC’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
Royal Dutch Shell PLC 2.91% 6.04% 2.80%

Analyst Recommendations

This is a summary of recent recommendations for Petrobras Argentina and Royal Dutch Shell PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Petrobras Argentina 0 0 0 0 N/A
Royal Dutch Shell PLC 2 3 11 0 2.56

Royal Dutch Shell PLC has a consensus target price of $57.00, suggesting a potential upside of Infinity. Given Royal Dutch Shell PLC’s higher probable upside, analysts plainly believe Royal Dutch Shell PLC is more favorable than Petrobras Argentina.

Risk & Volatility

Petrobras Argentina has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Royal Dutch Shell PLC has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Summary

Royal Dutch Shell PLC beats Petrobras Argentina on 7 of the 10 factors compared between the two stocks.

Petrobras Argentina Company Profile

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.

Royal Dutch Shell PLC Company Profile

The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company’s segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities.

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