Head-To-Head Contrast: Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) vs. OMV Aktiengesellschaft (OTCMKTS:OMVKY)

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) and OMV Aktiengesellschaft (OTCMKTS:OMVKY) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Petróleo Brasileiro S.A. – Petrobras and OMV Aktiengesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petróleo Brasileiro S.A. – Petrobras	16.17%	28.42%	10.53%
OMV Aktiengesellschaft	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Petróleo Brasileiro S.A. – Petrobras and OMV Aktiengesellschaft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petróleo Brasileiro S.A. – Petrobras	0	3	5	0	2.63
OMV Aktiengesellschaft	0	0	0	0	N/A

Petróleo Brasileiro S.A. – Petrobras currently has a consensus price target of $18.20, suggesting a potential upside of 33.33%. Given Petróleo Brasileiro S.A. – Petrobras’ higher probable upside, analysts clearly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than OMV Aktiengesellschaft.

Earnings and Valuation

This table compares Petróleo Brasileiro S.A. – Petrobras and OMV Aktiengesellschaft”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petróleo Brasileiro S.A. – Petrobras	$102.41 billion	N/A	$24.88 billion	$2.48	5.50
OMV Aktiengesellschaft	N/A	N/A	N/A	$1.80	5.79

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

Dividends

Petróleo Brasileiro S.A. – Petrobras pays an annual dividend of $0.86 per share and has a dividend yield of 6.3%. OMV Aktiengesellschaft pays an annual dividend of $0.94 per share and has a dividend yield of 9.0%. Petróleo Brasileiro S.A. – Petrobras pays out 34.7% of its earnings in the form of a dividend. OMV Aktiengesellschaft pays out 52.2% 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.

Institutional & Insider Ownership

0.1% of OMV Aktiengesellschaft shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Petróleo Brasileiro S.A. – Petrobras beats OMV Aktiengesellschaft on 8 of the 11 factors compared between the two stocks.

About Petróleo 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 OMV Aktiengesellschaft

OMV Aktiengesellschaft operates as an energy and chemicals company in Austria, Germany, Romania, Norway, Belgium, New Zealand, the United Arab Emirates, the rest of Central and Eastern Europe, the rest of Europe, and internationally. It operates through three segments: Chemicals & Materials, Fuels & Feedstock, and Energy. The company engages in the exploration, development, and production of oil and gas in the regions of Central and Eastern Europe, the Middle East and Africa, the North Sea, and the Asia Pacific; and refining and marketing of fuels and feedstock, as well as supply, marketing, trading, and logistics of gas in Romania and Turkey. In addition, the company provides advanced and circular polyolefin solutions, and base chemicals, as well as engages in the recycling of plastics. It has refineries in Europe, Schwechat, and Burghausen; filling stations in eight European countries; and gas storage facilities in Austria and Germany, as well as a gas-fired power plant in Romania. The company was founded in 1956 and is headquartered in Vienna, Austria.