New Fortress Energy (NASDAQ:NFE – Get Free Report) and Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.
Valuation & Earnings
This table compares New Fortress Energy and Petroleo Brasileiro S.A.- Petrobras”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
New Fortress Energy | $2.36 billion | 0.30 | -$249.04 million | ($2.25) | -1.16 |
Petroleo Brasileiro S.A.- Petrobras | $91.42 billion | 0.86 | $7.53 billion | $2.14 | 5.70 |
Profitability
This table compares New Fortress Energy and Petroleo Brasileiro S.A.- Petrobras’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
New Fortress Energy | -24.33% | -13.50% | -1.99% |
Petroleo Brasileiro S.A.- Petrobras | 15.99% | 34.11% | 8.63% |
Insider & Institutional Ownership
58.6% of New Fortress Energy shares are owned by institutional investors. 29.4% of New Fortress Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
New Fortress Energy has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Petroleo Brasileiro S.A.- Petrobras has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for New Fortress Energy and Petroleo Brasileiro S.A.- Petrobras, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
New Fortress Energy | 0 | 5 | 3 | 0 | 2.38 |
Petroleo Brasileiro S.A.- Petrobras | 0 | 1 | 5 | 2 | 3.13 |
New Fortress Energy currently has a consensus target price of $7.88, suggesting a potential upside of 202.88%. Petroleo Brasileiro S.A.- Petrobras has a consensus target price of $16.14, suggesting a potential upside of 32.24%. Given New Fortress Energy’s higher probable upside, analysts clearly believe New Fortress Energy is more favorable than Petroleo Brasileiro S.A.- Petrobras.
Summary
Petroleo Brasileiro S.A.- Petrobras beats New Fortress Energy on 11 of the 15 factors compared between the two stocks.
About New Fortress Energy
New Fortress Energy Inc. operates as an integrated gas-to-power energy infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure, and Ships. The Terminals and Infrastructure segment engages in the natural gas procurement and liquefaction; and shipping, logistics, facilities and conversion, or development of natural gas-fired power generation. The Ships segment offers floating storage and regasification units (FRSU) and liquefied natural gas (LNG) carriers which are leased to customers under long-term or spot arrangements. The company operates LNG storage and regasification facility at the Port of Montego Bay, Jamaica; marine LNG storage and regasification facility in Old Harbour, Jamaica; Dual-fired combined heat and power facility in Clarendon, Jamaica; landed micro-fuel handling facility in San Juan, Puerto Rico; and LNG receiving facility and gas-fired power plant in Baja Califrnia Sur, Mexico, as well as a Miami facility. New Fortress Energy Inc. was founded in 1998 and is based in New York, New York.
About Petroleo Brasileiro S.A.- Petrobras
PetrĂ³leo 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. PetrĂ³leo Brasileiro S.A. – Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.
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