WallStSmart

Petróleo Brasileiro S.A. - Petrobras (PBR-A)vsSM Energy Co (SM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petróleo Brasileiro S.A. - Petrobras generates 16337% more annual revenue ($497.55B vs $3.03B). PBR-A leads profitability with a 22.1% profit margin vs 21.4%. PBR-A appears more attractively valued with a PEG of 0.35. PBR-A earns a higher WallStSmart Score of 75/100 (B).

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

SM

Buy

60

out of 100

Grade: C+

Growth: 2.0Profit: 7.5Value: 9.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PBR-A.

SMUndervalued (+71.1%)

Margin of Safety

+71.1%

Fair Value

$75.72

Current Price

$31.23

$44.49 discount

UndervaluedFair: $75.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

SM5 strengths · Avg: 9.0/10
P/E RatioValuation
5.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Profit MarginProfitability
21.4%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.688/10

Growing faster than its price suggests

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

Areas to Watch

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

SM3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-17.1%2/10

Revenue declined 17.1%

EPS GrowthGrowth
-42.3%2/10

Earnings declined 42.3%

Free Cash FlowQuality
$-572.22M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SM

The strongest argument for SM centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 21.4% and operating margin at 26.9%. PEG of 0.68 suggests the stock is reasonably priced for its growth.

Bear Case : PBR-A

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

Bear Case : SM

The primary concerns for SM are Revenue Growth, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

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

SM carries more volatility with a beta of 0.78 — expect wider price swings.

PBR-A is growing revenue faster at 5.0% — 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 60/100), backed by strong 22.1% margins. SM offers better value entry with a 71.1% 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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SM Energy Co

ENERGY · OIL & GAS E&P · USA

SM Energy Company, an independent energy company, is engaged in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas. The company is headquartered in Denver, Colorado.

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