InterOil (IOC) & Petroleo Brasileiro SA Petrobras (PBR.A) Financial Review

InterOil (NYSE: IOC) and Petroleo Brasileiro SA Petrobras (NYSE:PBR.A) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

46.6% of InterOil shares are held by institutional investors. Comparatively, 4.4% of Petroleo Brasileiro SA Petrobras shares are held by institutional investors. 1.0% of Petroleo Brasileiro SA Petrobras shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares InterOil and Petroleo Brasileiro SA Petrobras’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InterOil -233.48% -14.08% -8.85%
Petroleo Brasileiro SA Petrobras 2.71% 4.27% 1.38%

Analyst Recommendations

This is a summary of recent ratings and target prices for InterOil and Petroleo Brasileiro SA Petrobras, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InterOil 0 0 0 0 N/A
Petroleo Brasileiro SA Petrobras 0 1 0 0 2.00

Petroleo Brasileiro SA Petrobras has a consensus target price of $10.00, suggesting a potential upside of 5.71%. Given Petroleo Brasileiro SA Petrobras’ higher possible upside, analysts clearly believe Petroleo Brasileiro SA Petrobras is more favorable than InterOil.

Valuation & Earnings

This table compares InterOil and Petroleo Brasileiro SA Petrobras’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InterOil N/A N/A N/A ($3.70) -13.07
Petroleo Brasileiro SA Petrobras $81.41 billion 0.76 -$4.84 billion ($0.47) -20.13

InterOil has higher earnings, but lower revenue than Petroleo Brasileiro SA Petrobras. Petroleo Brasileiro SA Petrobras is trading at a lower price-to-earnings ratio than InterOil, indicating that it is currently the more affordable of the two stocks.

Summary

Petroleo Brasileiro SA Petrobras beats InterOil on 7 of the 8 factors compared between the two stocks.

InterOil Company Profile

InterOil Corporation (InterOil) is an oil and gas business with a sole focus on Papua New Guinea (PNG). The Company’s segments include Upstream and Corporate. The Upstream segment includes exploration, appraisal and development of hydrocarbon structures in PNG. The Corporate segment provides support to the Company’s other business segments through business development and improvement activities, general services, administration, human resources, executive management, financing and treasury, government affairs and investor relations. InterOil holds interests across over four exploration and approximately two production retention licenses in the Eastern Papuan Basin of Papua New Guinea. Its assets include the Elk, Antelope, Triceratops, Raptor and Bobcat fields in the Gulf Province of Papua New Guinea, and exploration licenses covering approximately 16,000 square kilometers (over four million acres) in Papua New Guinea.

Petroleo Brasileiro SA Petrobras Company Profile

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.

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