Financial Review: Antero Resources (NYSE:AR) & Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) and Antero Resources (NYSE:AR) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Valuation and Earnings

This table compares Petróleo Brasileiro S.A. – Petrobras and Antero Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petróleo Brasileiro S.A. – Petrobras	$97.71 billion	0.94	$24.88 billion	$2.56	5.52
Antero Resources	$4.68 billion	2.03	$242.92 million	$0.14	217.68

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

Volatility & Risk

Petróleo Brasileiro S.A. – Petrobras has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Antero Resources has a beta of 3.36, indicating that its share price is 236% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Petróleo Brasileiro S.A. – Petrobras and Antero Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petróleo Brasileiro S.A. – Petrobras	0	3	5	0	2.63
Antero Resources	1	7	9	2	2.63

Petróleo Brasileiro S.A. – Petrobras presently has a consensus target price of $18.24, indicating a potential upside of 29.20%. Antero Resources has a consensus target price of $32.83, indicating a potential upside of 7.74%. Given Petróleo Brasileiro S.A. – Petrobras’ higher probable upside, research analysts clearly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than Antero Resources.

Profitability

This table compares Petróleo Brasileiro S.A. – Petrobras and Antero Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petróleo Brasileiro S.A. – Petrobras	16.96%	29.35%	10.79%
Antero Resources	1.03%	-0.59%	-0.32%

Insider & Institutional Ownership

83.0% of Antero Resources shares are owned by institutional investors. 6.7% of Antero Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Antero Resources beats Petróleo Brasileiro S.A. – Petrobras on 8 of the 15 factors compared between the two stocks.

About Petróleo 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 Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.