WallStSmart

Petróleo Brasileiro S.A. - Petrobras (PBR-A)vsTransportadora de Gas del Sur SA ADR (TGS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Transportadora de Gas del Sur SA ADR generates 257% more annual revenue ($1.78T vs $498.09B). TGS leads profitability with a 24.7% profit margin vs 21.6%. PBR-A trades at a lower P/E of 5.2x. TGS earns a higher WallStSmart Score of 65/100 (B-).

PBR-A

Buy

65

out of 100

Grade: C+

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

TGS

Strong Buy

65

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 6.0Quality: 8.0
Piotroski: 5/9Altman Z: 2.22

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

TGS5 strengths · Avg: 9.0/10
Operating MarginProfitability
49.7%10/10

Strong operational efficiency at 49.7%

Free Cash FlowQuality
$56.16B10/10

Generating 56.2B in free cash flow

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
16.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

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%

TGS0 concerns · Avg: 0/10

No major concerns identified

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 : TGS

The strongest argument for TGS centers on Operating Margin, Free Cash Flow, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 49.7%. Revenue growth of 13.2% demonstrates continued momentum.

Bear Case : PBR-A

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

Bear Case : TGS

No major red flags identified for TGS, but monitor valuation.

Key Dynamics to Monitor

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

PBR-A carries more volatility with a beta of -0.16 — expect wider price swings.

TGS is growing revenue faster at 13.2% — sustainability is the question.

TGS generates stronger free cash flow (56.2B), providing more financial flexibility.

Bottom Line

PBR-A scores higher overall (65/100 vs 65/100), backed by strong 21.6% margins. Both earn "Buy" and "Strong 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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Transportadora de Gas del Sur SA ADR

ENERGY · OIL & GAS INTEGRATED · USA

Transportadora de Gas del Sur SA provides natural gas transportation and distribution services in Argentina. The company is headquartered in Buenos Aires, Argentina.

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