InterOil (NYSE: IOC) and Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitabiliy, valuation, institutional ownership and risk.
Profitability
This table compares InterOil and Petroleo Brasileiro S.A.- Petrobras’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| InterOil | -233.48% | -14.08% | -8.85% |
| Petroleo Brasileiro S.A.- Petrobras | -3.64% | 5.15% | 1.68% |
Analyst Recommendations
This is a summary of current ratings for InterOil and Petroleo Brasileiro S.A.- Petrobras, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| InterOil | 0 | 1 | 0 | 0 | 2.00 |
| Petroleo Brasileiro S.A.- Petrobras | 1 | 4 | 6 | 0 | 2.45 |
InterOil presently has a consensus target price of $52.00, suggesting a potential upside of 7.53%. Petroleo Brasileiro S.A.- Petrobras has a consensus target price of $10.81, suggesting a potential upside of 21.99%. Given Petroleo Brasileiro S.A.- Petrobras’ stronger consensus rating and higher possible upside, analysts plainly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than InterOil.
Risk and Volatility
InterOil has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Petroleo Brasileiro S.A.- Petrobras has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500.
Valuation and Earnings
This table compares InterOil and Petroleo Brasileiro S.A.- Petrobras’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| InterOil | N/A | N/A | N/A | ($3.70) | -13.07 |
| Petroleo Brasileiro S.A.- Petrobras | $83.25 billion | 0.40 | $34.64 billion | ($0.46) | -19.26 |
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.
Insider & Institutional Ownership
46.6% of InterOil shares are owned by institutional investors. Comparatively, 6.3% of Petroleo Brasileiro S.A.- Petrobras shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Petroleo Brasileiro S.A.- Petrobras beats InterOil on 9 of the 10 factors compared between the two stocks.
InterOil Company Profile
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.
Petroleo Brasileiro S.A.- Petrobras Company Profile
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.
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