WallStSmart

Petróleo Brasileiro S.A. - Petrobras (PBR-A)vsStar Gas Partners LP (SGU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petróleo Brasileiro S.A. - Petrobras generates 27005% more annual revenue ($497.55B vs $1.84B). PBR-A leads profitability with a 22.1% profit margin vs 4.1%. PBR-A trades at a lower P/E of 6.3x. PBR-A earns a higher WallStSmart Score of 67/100 (B-).

PBR-A

Strong Buy

67

out of 100

Grade: B-

Growth: 4.0Profit: 9.0Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.35

SGU

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PBR-A.

SGUUndervalued (+50.2%)

Margin of Safety

+50.2%

Fair Value

$25.76

Current Price

$12.94

$12.82 discount

UndervaluedFair: $25.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR-A6 strengths · Avg: 9.2/10
P/E RatioValuation
6.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Market CapQuality
$131.32B9/10

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

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

SGU3 strengths · Avg: 9.7/10
P/E RatioValuation
6.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Return on EquityProfitability
24.9%9/10

Every $100 of equity generates 25 in profit

Areas to Watch

PBR-A3 concerns · Avg: 2.7/10
EPS GrowthGrowth
0.5%4/10

0.5% earnings growth

PEG RatioValuation
4.982/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

SGU3 concerns · Avg: 2.7/10
Market CapQuality
$405.73M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Free Cash FlowQuality
$-5.89M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PBR-A

The strongest argument for PBR-A centers on P/E Ratio, Price/Book, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 26.9%.

Bull Case : SGU

The strongest argument for SGU centers on P/E Ratio, Price/Book, Return on Equity. Revenue growth of 10.5% demonstrates continued momentum.

Bear Case : PBR-A

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

Bear Case : SGU

The primary concerns for SGU are Market Cap, Profit Margin, Free Cash Flow. Thin 4.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

SGU carries more volatility with a beta of 0.34 — expect wider price swings.

SGU is growing revenue faster at 10.5% — sustainability is the question.

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

Monitor OIL & GAS INTEGRATED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PBR-A scores higher overall (67/100 vs 56/100), backed by strong 22.1% margins. SGU offers better value entry with a 50.2% 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.

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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Star Gas Partners LP

ENERGY · OIL & GAS REFINING & MARKETING · USA

Star Group, LP sells home heating and air conditioning products and services to residential and commercial heating oil and propane customers in the United States. The company is headquartered in Stamford, Connecticut.

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