Financial Analysis: Enterprise GP Holdings L.P. common stock (EPE) vs. PETROLEO BRASIL/ADR (PBR)

Enterprise GP Holdings L.P. common stock (NYSE: PBR) and PETROLEO BRASIL/ADR (NYSE:PBR) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Enterprise GP Holdings L.P. common stock and PETROLEO BRASIL/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise GP Holdings L.P. common stock 3 7 1 0 1.82
PETROLEO BRASIL/ADR 0 10 1 0 2.09

Enterprise GP Holdings L.P. common stock presently has a consensus target price of $2.65, indicating a potential upside of 41.71%. PETROLEO BRASIL/ADR has a consensus target price of $13.96, indicating a potential upside of 31.82%. Given Enterprise GP Holdings L.P. common stock’s higher probable upside, research analysts clearly believe Enterprise GP Holdings L.P. common stock is more favorable than PETROLEO BRASIL/ADR.

Profitability

This table compares Enterprise GP Holdings L.P. common stock and PETROLEO BRASIL/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise GP Holdings L.P. common stock -18.51% -16.50% -1.36%
PETROLEO BRASIL/ADR 3.60% 7.89% 2.62%

Insider & Institutional Ownership

66.5% of Enterprise GP Holdings L.P. common stock shares are held by institutional investors. Comparatively, 6.6% of PETROLEO BRASIL/ADR shares are held by institutional investors. 0.4% of Enterprise GP Holdings L.P. common stock shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Enterprise GP Holdings L.P. common stock and PETROLEO BRASIL/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enterprise GP Holdings L.P. common stock $1.07 billion 0.45 -$194.00 million ($0.39) -4.79
PETROLEO BRASIL/ADR $88.83 billion 0.78 -$91.00 million $0.70 15.13

PETROLEO BRASIL/ADR has higher revenue and earnings than Enterprise GP Holdings L.P. common stock. Enterprise GP Holdings L.P. common stock is trading at a lower price-to-earnings ratio than PETROLEO BRASIL/ADR, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Enterprise GP Holdings L.P. common stock has a beta of 3.64, meaning that its stock price is 264% more volatile than the S&P 500. Comparatively, PETROLEO BRASIL/ADR has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500.

Dividends

PETROLEO BRASIL/ADR pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Enterprise GP Holdings L.P. common stock does not pay a dividend. PETROLEO BRASIL/ADR pays out 5.7% of its earnings in the form of a dividend.

Summary

PETROLEO BRASIL/ADR beats Enterprise GP Holdings L.P. common stock on 10 of the 15 factors compared between the two stocks.

Enterprise GP Holdings L.P. common stock Company Profile

EP Energy Corporation, an independent exploration and production company, engages in the exploration for and the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States. The company has interests in three primary areas, such as the Permian basin in West Texas; the Eagle Ford Shale in South Texas; and the Altamont Field in the Uinta basin in Northeastern Utah. As of December 31, 2017, it had proved reserves of 392.1 million barrels of oil equivalent and had average net daily production of 82,257 barrel of oil equivalent/per day. The company primarily sells its oil and natural gas production to third parties. EP Energy Corporation was founded in 2013 and is headquartered in Houston, Texas.

PETROLEO BRASIL/ADR Company Profile

Petróleo Brasileiro S.A. – Petrobras operates in the oil, natural gas, and energy industries. The company's Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; and sale of surplus crude oil and oil products produced in the natural gas processing plants to the domestic and international markets. Its Refining, Transportation and Marketing segment is involved in refining, logistics, transport, and trading of crude oil and oil products; exportation of ethanol; and extraction and processing of shale, as well as holding interests in petrochemical companies. The company's Gas and Power segment engages in the transportation and trading of natural gas and liquid natural gas; importation of natural gas; generation and trading of electricity; holding interests in transportation and distribution of natural gas, and thermoelectric power plants; and fertilizer business. Its Biofuels segment is involved in the production of biodiesel and its co-products, as well as the equity investment, production, and trading of ethanol, sugar, and electric power generated from sugarcane bagasse. The company's Distribution segment sells oil products, ethanol, and vehicle natural gas in Brazil, as well as distributes oil products in South America. Petróleo Brasileiro S.A. – Petrobras was founded in 1953 and is headquartered in Rio de Janeiro, Brazil.

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