DHT (NYSE:DHT – Get Free Report) and Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Dividends
DHT pays an annual dividend of $4.88 per share and has a dividend yield of 22.8%. Petroleo Brasileiro S.A.- Petrobras pays an annual dividend of $0.43 per share and has a dividend yield of 2.0%. DHT pays out 166.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Petroleo Brasileiro S.A.- Petrobras pays out 10.9% of its earnings in the form of a dividend.
Profitability
This table compares DHT and Petroleo Brasileiro S.A.- Petrobras’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DHT | 65.52% | 39.40% | 28.63% |
| Petroleo Brasileiro S.A.- Petrobras | 24.52% | 30.61% | 10.94% |
Volatility and Risk
Analyst Ratings
This is a breakdown of recent recommendations for DHT and Petroleo Brasileiro S.A.- Petrobras, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DHT | 0 | 2 | 3 | 0 | 2.60 |
| Petroleo Brasileiro S.A.- Petrobras | 0 | 2 | 5 | 0 | 2.71 |
DHT currently has a consensus price target of $19.33, indicating a potential downside of 9.78%. Petroleo Brasileiro S.A.- Petrobras has a consensus price target of $19.48, indicating a potential downside of 8.89%. Given Petroleo Brasileiro S.A.- Petrobras’ stronger consensus rating and higher possible upside, analysts clearly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than DHT.
Insider & Institutional Ownership
58.5% of DHT shares are held by institutional investors. 1.6% of DHT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares DHT and Petroleo Brasileiro S.A.- Petrobras”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DHT | $498.40 million | 6.92 | $211.09 million | $2.94 | 7.29 |
| Petroleo Brasileiro S.A.- Petrobras | $89.19 billion | 1.54 | $19.63 billion | $3.96 | 5.40 |
Petroleo Brasileiro S.A.- Petrobras has higher revenue and earnings than DHT. Petroleo Brasileiro S.A.- Petrobras is trading at a lower price-to-earnings ratio than DHT, indicating that it is currently the more affordable of the two stocks.
About DHT
DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.
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.
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