Financial Comparison: Petroleo Brasileiro S.A.- Petrobras (PBR) vs. InterOil (NYSE:IOC)

Petroleo Brasileiro S.A.- Petrobras (NYSE: PBR) and InterOil (NYSE:IOC) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitabiliy, earnings, valuation, dividends, institutional ownership and risk.

Volatility & Risk

Petroleo Brasileiro S.A.- Petrobras has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. Comparatively, InterOil has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Petroleo Brasileiro S.A.- Petrobras and InterOil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petroleo Brasileiro S.A.- Petrobras	1	4	6	0	2.45
InterOil	0	2	0	0	2.00

Petroleo Brasileiro S.A.- Petrobras presently has a consensus price target of $10.81, suggesting a potential upside of 24.38%. InterOil has a consensus price target of $51.00, suggesting a potential upside of 5.46%. Given Petroleo Brasileiro S.A.- Petrobras’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than InterOil.

Institutional and Insider Ownership

6.2% of Petroleo Brasileiro S.A.- Petrobras shares are held by institutional investors. Comparatively, 46.6% of InterOil shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Petroleo Brasileiro S.A.- Petrobras and InterOil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petroleo Brasileiro S.A.- Petrobras	-3.64%	5.15%	1.68%
InterOil	-233.48%	-14.08%	-8.85%

Earnings and Valuation

This table compares Petroleo Brasileiro S.A.- Petrobras and InterOil’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Petroleo Brasileiro S.A.- Petrobras	$81.67 billion	0.69	$33.98 billion	($0.46)	-18.89
InterOil	N/A	N/A	N/A	($3.70)	-13.07

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

Summary

Petroleo Brasileiro S.A.- Petrobras beats InterOil on 9 of the 10 factors compared between the two stocks.

About Petroleo Brasileiro S.A.- Petrobras

Petroleo Brasileiro S.A.-Petrobras specializes in the oil, natural gas and energy industry. The Company is engaged in prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks. Its segments include Exploration and Production, which covers the activities of exploration, development and production of crude oil, natural gas liquid and natural gas; Refining, Transportation and Marketing, which covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, and extraction and processing of shale; Gas and Power, which is engaged in transportation and trading of natural gas produced in Brazil and imported natural gas; Biofuels, which covers the activities of production of biodiesel and its co-products, and ethanol-related activities; Distribution, which includes the activities of its subsidiary Petrobras Distribuidora S.A., and Corporate.

About InterOil

InterOil Corporation (InterOil) is an oil and gas business with a sole focus on Papua New Guinea (PNG). The Company’s segments include Upstream and Corporate. The Upstream segment includes exploration, appraisal and development of hydrocarbon structures in PNG. The Corporate segment provides support to the Company’s other business segments through business development and improvement activities, general services, administration, human resources, executive management, financing and treasury, government affairs and investor relations. InterOil holds interests across over four exploration and approximately two production retention licenses in the Eastern Papuan Basin of Papua New Guinea. Its assets include the Elk, Antelope, Triceratops, Raptor and Bobcat fields in the Gulf Province of Papua New Guinea, and exploration licenses covering approximately 16,000 square kilometers (over four million acres) in Papua New Guinea.