WallStSmart

Epsilon Energy Ltd (EPSN)vsPetróleo Brasileiro S.A. - Petrobras (PBR-A)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petróleo Brasileiro S.A. - Petrobras generates 964367% more annual revenue ($497.55B vs $51.59M). PBR-A leads profitability with a 22.1% profit margin vs -11.2%. PBR-A earns a higher WallStSmart Score of 75/100 (B).

EPSN

Buy

57

out of 100

Grade: C

Growth: 7.3Profit: 5.0Value: 6.0Quality: 7.5
Piotroski: 4/9Altman Z: 2.89

PBR-A

Strong Buy

75

out of 100

Grade: B

Growth: 4.0Profit: 9.0Value: 8.3Quality: 4.5
Piotroski: 5/9Altman Z: 1.35
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EPSNUndervalued (+15.8%)

Margin of Safety

+15.8%

Fair Value

$5.69

Current Price

$6.34

$0.65 discount

UndervaluedFair: $5.69Overvalued

Intrinsic value data unavailable for PBR-A.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EPSN5 strengths · Avg: 9.6/10
Operating MarginProfitability
43.9%10/10

Strong operational efficiency at 43.9%

Revenue GrowthGrowth
65.7%10/10

Revenue surging 65.7% year-over-year

EPS GrowthGrowth
192.0%10/10

Earnings expanding 192.0% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

PBR-A6 strengths · Avg: 9.2/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

P/E RatioValuation
6.5x10/10

Attractively priced relative to earnings

Market CapQuality
$136.11B9/10

Large-cap with strong market position

Return on EquityProfitability
28.2%9/10

Every $100 of equity generates 28 in profit

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

EPSN4 concerns · Avg: 2.0/10
Market CapQuality
$183.31M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-5.2%2/10

ROE of -5.2% — below average capital efficiency

Free Cash FlowQuality
$-4.48M2/10

Negative free cash flow — burning cash

Profit MarginProfitability
-11.2%1/10

Currently unprofitable

PBR-A2 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.5%4/10

0.5% earnings growth

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : EPSN

The strongest argument for EPSN centers on Operating Margin, Revenue Growth, EPS Growth. Revenue growth of 65.7% demonstrates continued momentum.

Bull Case : PBR-A

The strongest argument for PBR-A centers on PEG Ratio, P/E Ratio, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 26.9%. PEG of 0.35 suggests the stock is reasonably priced for its growth.

Bear Case : EPSN

The primary concerns for EPSN are Market Cap, Return on Equity, Free Cash Flow.

Bear Case : PBR-A

The primary concerns for PBR-A are EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

EPSN profiles as a hypergrowth stock while PBR-A is a value play — different risk/reward profiles.

PBR-A carries more volatility with a beta of -0.07 — expect wider price swings.

EPSN is growing revenue faster at 65.7% — sustainability is the question.

PBR-A generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

PBR-A scores higher overall (75/100 vs 57/100), backed by strong 22.1% margins. EPSN offers better value entry with a 15.8% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Epsilon Energy Ltd

ENERGY · OIL & GAS E&P · USA

Epsilon Energy Ltd., an oil and natural gas company, is engaged in the acquisition, development, collection and production of oil and gas reserves in the United States. The company is headquartered in Houston, Texas.

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Petróleo Brasileiro S.A. - Petrobras

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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