Petróleo Brasileiro S.A. - Petrobras (PBR-A)vsRio Tinto ADR (RIO)
PBR-A
Petróleo Brasileiro S.A. - Petrobras
$17.95
+2.40%
ENERGY · Cap: $114.52B
RIO
Rio Tinto ADR
$87.54
+0.89%
BASIC MATERIALS · Cap: $139.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Petróleo Brasileiro S.A. - Petrobras generates 763% more annual revenue ($497.55B vs $57.64B). PBR-A leads profitability with a 22.1% profit margin vs 17.3%. PBR-A appears more attractively valued with a PEG of 0.30. PBR-A earns a higher WallStSmart Score of 75/100 (B).
PBR-A
Strong Buy75
out of 100
Grade: B
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.8%
Fair Value
$23.71
Current Price
$17.95
$5.76 discount
Margin of Safety
-136.9%
Fair Value
$41.41
Current Price
$87.54
$46.13 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Large-cap with strong market position
Every $100 of equity generates 28 in profit
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Areas to Watch
0.5% earnings growth
Distress zone — elevated risk
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull 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 0.30 suggests the stock is reasonably priced for its growth.
Bull Case : RIO
The strongest argument for RIO centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : PBR-A
The primary concerns for PBR-A are EPS Growth, Altman Z-Score.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
PBR-A profiles as a value stock while RIO is a mature play — different risk/reward profiles.
RIO carries more volatility with a beta of 0.65 — expect wider price swings.
RIO is growing revenue faster at 14.6% — 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 54/100), backed by strong 22.1% margins. 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.
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.
Visit Website →Rio Tinto ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.
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