Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) and Laredo Petroleum (NYSE:LPI) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Valuation & Earnings
This table compares Petróleo Brasileiro S.A. – Petrobras and Laredo Petroleum’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Petróleo Brasileiro S.A. – Petrobras | $53.68 billion | 1.32 | $1.14 billion | $3.94 | 2.76 |
| Laredo Petroleum | $677.19 million | 1.53 | -$874.17 million | ($22.42) | -2.72 |
Petróleo Brasileiro S.A. – Petrobras has higher revenue and earnings than Laredo Petroleum. Laredo Petroleum is trading at a lower price-to-earnings ratio than Petróleo Brasileiro S.A. – Petrobras, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Petróleo Brasileiro S.A. – Petrobras and Laredo Petroleum, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Petróleo Brasileiro S.A. – Petrobras | 1 | 3 | 6 | 0 | 2.50 |
| Laredo Petroleum | 1 | 2 | 2 | 0 | 2.20 |
Petróleo Brasileiro S.A. – Petrobras presently has a consensus price target of $12.26, suggesting a potential upside of 12.75%. Laredo Petroleum has a consensus price target of $75.25, suggesting a potential upside of 23.58%. Given Laredo Petroleum’s higher probable upside, analysts plainly believe Laredo Petroleum is more favorable than Petróleo Brasileiro S.A. – Petrobras.
Profitability
This table compares Petróleo Brasileiro S.A. – Petrobras and Laredo Petroleum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Petróleo Brasileiro S.A. – Petrobras | 34.87% | 25.88% | 9.10% |
| Laredo Petroleum | -21.33% | -2,190.66% | 6.36% |
Risk & Volatility
Petróleo Brasileiro S.A. – Petrobras has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Laredo Petroleum has a beta of 4.17, meaning that its share price is 317% more volatile than the S&P 500.
Insider & Institutional Ownership
10.9% of Petróleo Brasileiro S.A. – Petrobras shares are held by institutional investors. Comparatively, 70.5% of Laredo Petroleum shares are held by institutional investors. 3.3% of Laredo Petroleum shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Petróleo Brasileiro S.A. – Petrobras beats Laredo Petroleum on 9 of the 14 factors compared between the two stocks.
Petróleo Brasileiro S.A. – Petrobras Company Profile
Petróleo Brasileiro SA engages in oil and gas exploration, production, and distribution activities. It operates through the following segments: Exploration and Production; Refining, Transportation, and Marketing; Gas and Power; and Corporate and Other Business. The Exploration and Production segment involves crude oil, natural gas liquids, and natural gas exploration, development, and production. The Refining, Transportation and Marketing segment involves refining, logistics, transportation, trading operations, oil products and crude oil exports and imports, and petrochemical investments. The Gas and Power segment includes transportation and trading of natural and liquefied natural gas, the generation and trading of electric power, and the fertilizer business. The Corporate and Other Business segment comprises the financing activities not attributable to other segments including corporate financial management, and central administrative overhead and actuarial expenses. The company was founded on October 3, 1953 and is headquartered in Rio de Janeiro, Brazil.
Laredo Petroleum Company Profile
Laredo Petroleum, Inc. engages in the exploration, development and acquisition of oil and natural gas properties. It operates in the Permian Basin in West Texas. The company was founded by Randy A. Foutch in October 2006 and is headquartered in Tulsa, OK.
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