Exxon Mobil (NYSE:XOM) vs. Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) Head to Head Review

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

Institutional & Insider Ownership

61.8% of Exxon Mobil shares are owned by institutional investors. 0.0% of Exxon Mobil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Petroleo Brasileiro S.A.- Petrobras and Exxon Mobil”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petroleo Brasileiro S.A.- Petrobras	$88.72 billion	0.89	$7.53 billion	$1.34	9.15
Exxon Mobil	$349.59 billion	1.34	$33.68 billion	$7.54	14.40

Exxon Mobil 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 Exxon Mobil, indicating that it is currently the more affordable of the two stocks.

Dividends

Petroleo Brasileiro S.A.- Petrobras pays an annual dividend of $0.99 per share and has a dividend yield of 8.1%. Exxon Mobil pays an annual dividend of $3.96 per share and has a dividend yield of 3.6%. Petroleo Brasileiro S.A.- Petrobras pays out 73.9% of its earnings in the form of a dividend. Exxon Mobil pays out 52.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Exxon Mobil has raised its dividend for 42 consecutive years.

Risk and Volatility

Petroleo Brasileiro S.A.- Petrobras has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Exxon Mobil has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Petroleo Brasileiro S.A.- Petrobras and Exxon Mobil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petroleo Brasileiro S.A.- Petrobras	0	1	6	1	3.00
Exxon Mobil	1	9	8	2	2.55

Petroleo Brasileiro S.A.- Petrobras presently has a consensus target price of $17.40, indicating a potential upside of 41.87%. Exxon Mobil has a consensus target price of $125.42, indicating a potential upside of 15.48%. Given Petroleo Brasileiro S.A.- Petrobras’ stronger consensus rating and higher possible upside, equities analysts plainly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than Exxon Mobil.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Petroleo Brasileiro S.A.- Petrobras	9.83%	23.98%	8.37%
Exxon Mobil	9.49%	12.06%	7.21%

Summary

Exxon Mobil beats Petroleo Brasileiro S.A.- Petrobras on 11 of the 18 factors compared between the two stocks.

About Petroleo Brasileiro S.A.- Petrobras

Petróleo Brasileiro S.A. – Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company operates through three segments: Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, acquisition, and exports of crude oil; and production of fertilizers, as well as holding interests in petrochemical companies. The Gas and Power segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; renewable energy businesses; low carbon services; and natural gas processing business, as well as production of biodiesel and its co-products. The company also engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. In addition, it engages in research, development, production, transport, distribution, and trading of energy. Petróleo Brasileiro S.A. – Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.

About Exxon Mobil

Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments. The Upstream segment explores for and produces crude oil and natural gas. The Energy Products segment offers fuels, aromatics, catalysts, and licensing services. It sells its products under the Exxon, Esso, and Mobil brands. The Chemical Products segment manufactures and markets petrochemicals, including olefins, polyolefins, and intermediates. The Specialty Products segment offers performance products, including lubricants, basestocks, waxes, synthetics, elastomers, and resins. The company is also involved in the manufacturing, trade, transport, and selling crude oil, natural gas, petroleum products, petrochemicals, and other specialty products in pursuit of lower-emission business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, and lithium. Exxon Mobil Corporation was founded in 1870 and is based in Spring, Texas.