Noble (OTCMKTS:NEBLQ) vs. Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) Financial Analysis

Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) and Noble (OTCMKTS:NEBLQ) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Institutional & Insider Ownership

42.1% of Noble shares are owned by institutional investors. 1.1% of Noble shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Petroleo Brasileiro S.A.- Petrobras	21.67%	23.65%	8.24%
Noble	-126.73%	-11.86%	-4.78%

Analyst Ratings

This is a summary of recent recommendations and price targets for Petroleo Brasileiro S.A.- Petrobras and Noble, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petroleo Brasileiro S.A.- Petrobras	1	1	5	0	2.57
Noble	0	0	0	0	0.00

Petroleo Brasileiro S.A.- Petrobras presently has a consensus price target of $19.28, indicating a potential upside of 3.07%. 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 Noble.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petroleo Brasileiro S.A.- Petrobras	$89.19 billion	1.35	$19.63 billion	$3.08	6.07
Noble	$1.31 billion	0.01	-$700.59 million	($1.52)	-0.03

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

Summary

Petroleo Brasileiro S.A.- Petrobras beats Noble on 11 of the 13 factors compared between the two stocks.

About Petroleo Brasileiro S.A.- Petrobras

Petróleo Brasileiro S.A. – Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company operates through three segments: Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, acquisition, and exports of crude oil; and production of fertilizers, as well as holding interests in petrochemical companies. The Gas and Power segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; renewable energy businesses; low carbon services; and natural gas processing business, as well as production of biodiesel and its co-products. The company also engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. In addition, it engages in research, development, production, transport, distribution, and trading of energy. Petróleo Brasileiro S.A. – Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.

About Noble

Noble Holding Corporation plc operates as an offshore drilling contractor for the oil and gas industry worldwide. It provides contract drilling services using mobile offshore drilling units. As of November 6, 2020, the company operated a fleet of 19 drilling rigs consisted of 7 drillships and semisubmersibles and 12 jackups. The company was formerly known as Noble Corporation plc and changed its name to Noble Holding Corporation plc in November 2020. Noble Holding Corporation plc was founded in 1921 and is headquartered in London, the United Kingdom. On July 31, 2020, Noble Corporation plc, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.