WallStSmart

Hess Midstream Partners LP (HESM)vsPetroleo Brasileiro Petrobras SA ADR (PBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 33879% more annual revenue ($548.49B vs $1.61B). PBR leads profitability with a 24.3% profit margin vs 23.2%. HESM appears more attractively valued with a PEG of 1.57. PBR earns a higher WallStSmart Score of 84/100 (A-).

HESM

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 4.7Quality: 3.8
Piotroski: 5/9

PBR

Exceptional Buy

84

out of 100

Grade: A-

Growth: 7.3Profit: 9.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HESMSignificantly Overvalued (-15.4%)

Margin of Safety

-15.4%

Fair Value

$31.55

Current Price

$38.78

$7.23 premium

UndervaluedFair: $31.55Overvalued
PBRUndervalued (+88.9%)

Margin of Safety

+88.9%

Fair Value

$187.43

Current Price

$20.76

$166.67 discount

UndervaluedFair: $187.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HESM4 strengths · Avg: 9.3/10
Return on EquityProfitability
71.2%10/10

Every $100 of equity generates 71 in profit

Operating MarginProfitability
63.5%10/10

Strong operational efficiency at 63.5%

Profit MarginProfitability
23.2%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

PBR6 strengths · Avg: 9.8/10
P/E RatioValuation
5.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
44.7%10/10

Strong operational efficiency at 44.7%

Revenue GrowthGrowth
42.3%10/10

Revenue surging 42.3% year-over-year

EPS GrowthGrowth
96.8%10/10

Earnings expanding 96.8% YoY

Market CapQuality
$134.04B9/10

Large-cap with strong market position

Areas to Watch

HESM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Price/BookValuation
9.7x4/10

Trading at 9.7x book value

EPS GrowthGrowth
1.4%4/10

1.4% earnings growth

Revenue GrowthGrowth
-3.7%2/10

Revenue declined 3.7%

PBR1 concerns · Avg: 2.0/10
PEG RatioValuation
5.962/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : HESM

The strongest argument for HESM centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 23.2% and operating margin at 63.5%.

Bull Case : PBR

The strongest argument for PBR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 24.3% and operating margin at 44.7%. Revenue growth of 42.3% demonstrates continued momentum.

Bear Case : HESM

The primary concerns for HESM are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 7.15 is elevated, increasing financial risk.

Bear Case : PBR

The primary concerns for PBR are PEG Ratio.

Key Dynamics to Monitor

HESM profiles as a declining stock while PBR is a growth play — different risk/reward profiles.

HESM carries more volatility with a beta of 0.50 — expect wider price swings.

PBR is growing revenue faster at 42.3% — sustainability is the question.

PBR generates stronger free cash flow (7.3B), providing more financial flexibility.

Bottom Line

PBR scores higher overall (84/100 vs 58/100), backed by strong 24.3% margins and 42.3% revenue growth. Both earn "Exceptional 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.

Hess Midstream Partners LP

ENERGY · OIL & GAS MIDSTREAM · USA

Hess Midstream LP owns, develops, operates and acquires midstream assets. The company is headquartered in Houston, Texas.

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Petroleo Brasileiro Petrobras SA ADR

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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