WallStSmart

Petróleo Brasileiro S.A. - Petrobras (PBR-A)vsRPC Inc (RES)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petróleo Brasileiro S.A. - Petrobras generates 28388% more annual revenue ($498.09B vs $1.75B). PBR-A leads profitability with a 21.6% profit margin vs 1.2%. PBR-A appears more attractively valued with a PEG of 4.09. PBR-A earns a higher WallStSmart Score of 65/100 (C+).

PBR-A

Buy

65

out of 100

Grade: C+

Growth: 2.7Profit: 8.5Value: 5.7Quality: 4.8
Piotroski: 4/9

RES

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 4.0Value: 4.7Quality: 8.5
Piotroski: 2/9Altman Z: 4.46
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PBR-A.

RESUndervalued (+74.8%)

Margin of Safety

+74.8%

Fair Value

$22.75

Current Price

$6.81

$15.94 discount

UndervaluedFair: $22.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR-A6 strengths · Avg: 9.5/10
P/E RatioValuation
5.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Market CapQuality
$111.87B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

RES4 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
36.6%10/10

Revenue surging 36.6% year-over-year

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.4610/10

Safe zone — low bankruptcy risk

Areas to Watch

PBR-A3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

PEG RatioValuation
4.092/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.2%2/10

Earnings declined 7.2%

RES4 concerns · Avg: 3.0/10
Market CapQuality
$1.47B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.9%3/10

ROE of 1.9% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : PBR-A

The strongest argument for PBR-A centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 32.0%.

Bull Case : RES

The strongest argument for RES centers on Price/Book, Revenue Growth, Debt/Equity. Revenue growth of 36.6% demonstrates continued momentum.

Bear Case : PBR-A

The primary concerns for PBR-A are Revenue Growth, PEG Ratio, EPS Growth.

Bear Case : RES

The primary concerns for RES are Market Cap, Return on Equity, Profit Margin. A P/E of 73.6x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

RES carries more volatility with a beta of 0.69 — expect wider price swings.

RES is growing revenue faster at 36.6% — sustainability is the question.

PBR-A generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

PBR-A scores higher overall (65/100 vs 47/100), backed by strong 21.6% margins. RES offers better value entry with a 74.8% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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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RPC Inc

ENERGY · OIL & GAS EQUIPMENT & SERVICES · USA

RPC, Inc. provides a range of oilfield services and equipment for oil and gas companies involved in the exploration, production and development of oil and gas properties. The company is headquartered in Atlanta, Georgia.

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