Coterra Energy (NYSE:CTRA – Get Rating) and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR – Get Rating) are both large-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.
Valuation and Earnings
This table compares Coterra Energy and Petróleo Brasileiro S.A. – Petrobras’ gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Coterra Energy | $9.05 billion | 2.00 | $4.07 billion | $5.11 | 4.60 |
Petróleo Brasileiro S.A. – Petrobras | $124.47 billion | 0.53 | $36.62 billion | $5.60 | 1.79 |
Petróleo Brasileiro S.A. – Petrobras has higher revenue and earnings than Coterra Energy. Petróleo Brasileiro S.A. – Petrobras is trading at a lower price-to-earnings ratio than Coterra Energy, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Coterra Energy and Petróleo Brasileiro S.A. – Petrobras, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Coterra Energy | 1 | 16 | 3 | 0 | 2.10 |
Petróleo Brasileiro S.A. – Petrobras | 1 | 6 | 0 | 0 | 1.86 |
Coterra Energy presently has a consensus price target of $30.25, suggesting a potential upside of 28.67%. Petróleo Brasileiro S.A. – Petrobras has a consensus price target of $14.00, suggesting a potential upside of 39.72%. Given Petróleo Brasileiro S.A. – Petrobras’ higher probable upside, analysts plainly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than Coterra Energy.
Profitability
This table compares Coterra Energy and Petróleo Brasileiro S.A. – Petrobras’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Coterra Energy | 44.91% | 31.29% | 18.92% |
Petróleo Brasileiro S.A. – Petrobras | 29.42% | 44.48% | 18.03% |
Dividends
Coterra Energy pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Petróleo Brasileiro S.A. – Petrobras pays an annual dividend of $3.44 per share and has a dividend yield of 34.3%. Coterra Energy pays out 11.7% of its earnings in the form of a dividend. Petróleo Brasileiro S.A. – Petrobras pays out 61.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Insider and Institutional Ownership
94.7% of Coterra Energy shares are owned by institutional investors. Comparatively, 12.3% of Petróleo Brasileiro S.A. – Petrobras shares are owned by institutional investors. 1.6% of Coterra Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Coterra Energy beats Petróleo Brasileiro S.A. – Petrobras on 9 of the 16 factors compared between the two stocks.
About Coterra Energy
Coterra Energy Inc. is a diversified energy company, which engages in the exploration, development, and production of oil and natural gas properties. Its portfolio includes projects in the Permian Basin, the Marcellus Shale, and the Anadarko Basin. The company was renamed to Coterra Energy Inc. on October 1, 2021 in connection with the merger involving Cabot Oil & Gas Corp. and Cimarex Energy Co. Coterra Energy was founded in 1989 and is headquartered in Houston, TX.
About Petróleo Brasileiro S.A. – Petrobras
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.
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