Royal Dutch Shell PLC (NYSE: RDS.A) and Petrobras Argentina (NYSE:PZE) are both mid-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Valuation & Earnings

This table compares Royal Dutch Shell PLC and Petrobras Argentina’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Royal Dutch Shell PLC N/A N/A N/A $1.96 N/A
Petrobras Argentina $1.57 billion 1.59 $325.10 million N/A N/A

Petrobras Argentina has higher revenue and earnings than Royal Dutch Shell PLC.

Insider and Institutional Ownership

6.3% of Royal Dutch Shell PLC shares are owned by institutional investors. Comparatively, 3.4% of Petrobras Argentina shares are owned by institutional investors. 1.0% of Royal Dutch Shell PLC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Royal Dutch Shell PLC has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Petrobras Argentina has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Profitability

This table compares Royal Dutch Shell PLC and Petrobras Argentina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royal Dutch Shell PLC 2.91% 6.04% 2.80%
Petrobras Argentina N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Royal Dutch Shell PLC and Petrobras Argentina, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royal Dutch Shell PLC 2 3 11 0 2.56
Petrobras Argentina 0 0 0 0 N/A

Royal Dutch Shell PLC presently has a consensus target price of $57.29, suggesting a potential upside of Infinity. Given Royal Dutch Shell PLC’s higher probable upside, equities analysts clearly believe Royal Dutch Shell PLC is more favorable than Petrobras Argentina.

Dividends

Royal Dutch Shell PLC pays an annual dividend of $3.20 per share. Petrobras Argentina does not pay a dividend. Royal Dutch Shell PLC pays out 163.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Royal Dutch Shell PLC beats Petrobras Argentina on 7 of the 10 factors compared between the two stocks.

Royal Dutch Shell PLC Company Profile

The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company’s segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities.

Petrobras Argentina Company Profile

Petrobras Argentina SA, formerly Petrobras Energia SA, is an Argentina-based company primarily engaged in the petroleum refining sector. The Company’s activities are structured in four business segments: Oil and Gas Exploration and Production, including the acquisition, exploration, exploitation and maintenance of oil and gas reserves; Refining and Distribution, processing and marketing of petroleum products; Petrochemicals, comprising the production of styrene, polystyrene, bi-oriented polystyrene (BOPS) and synthetic rubber; as well as Gas and Energy, providing gas distribution, as well as fossil fuel and hydroelectric power energy generation. Its petroleum products include lubricants, diesel fuel, compressed natural gas (CNG) and asphalts, among others. The Company has operations established in Argentina, Bolivia, Ecuador, Venezuela, Mexico and Spain, among others. The Company is owned by Petrobras Participaciones SL. It operates throught Albares Renovables Argentina SA.

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