ENI S.p.A. (NYSE:E) and Petrobras Argentina (PZE) Head-To-Head Analysis

Petrobras Argentina (NYSE: PZE) and ENI S.p.A. (NYSE:E) are both mid-cap integrated oil & gas companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Risk & Volatility

Petrobras Argentina has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, ENI S.p.A. has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares Petrobras Argentina and ENI S.p.A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Petrobras Argentina N/A N/A N/A
ENI S.p.A. 2.50% 3.69% 1.54%

Insider & Institutional Ownership

3.4% of Petrobras Argentina shares are held by institutional investors. Comparatively, 1.7% of ENI S.p.A. shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Petrobras Argentina and ENI S.p.A., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Petrobras Argentina 0 0 0 0 N/A
ENI S.p.A. 4 3 4 0 2.00

ENI S.p.A. has a consensus target price of $16.00, suggesting a potential downside of 51.88%. Given ENI S.p.A.’s higher probable upside, analysts clearly believe ENI S.p.A. is more favorable than Petrobras Argentina.

Dividends

ENI S.p.A. pays an annual dividend of $1.31 per share and has a dividend yield of 3.9%. Petrobras Argentina does not pay a dividend. ENI S.p.A. pays out 131.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Petrobras Argentina and ENI S.p.A.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Petrobras Argentina $1.97 billion 1.24 -$1.00 million ($0.05) -242.60
ENI S.p.A. $62.74 billion 0.96 -$1.62 billion $1.00 33.25

Petrobras Argentina has higher revenue, but lower earnings than ENI S.p.A.. Petrobras Argentina is trading at a lower price-to-earnings ratio than ENI S.p.A., indicating that it is currently the more affordable of the two stocks.

Summary

ENI S.p.A. beats Petrobras Argentina on 8 of the 13 factors compared between the two stocks.

About Petrobras Argentina

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.

About ENI S.p.A.

Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company’s segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.

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