WallStSmart

Petróleo Brasileiro S.A. - Petrobras (PBR-A)vsMorningStar Partners, L.P. (TXO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petróleo Brasileiro S.A. - Petrobras generates 123973% more annual revenue ($497.55B vs $401.01M). PBR-A leads profitability with a 22.1% profit margin vs -5.4%. 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

TXO

Buy

51

out of 100

Grade: C-

Growth: 9.3Profit: 2.0Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PBR-A.

TXOUndervalued (+20.4%)

Margin of Safety

+20.4%

Fair Value

$15.82

Current Price

$12.43

$3.39 discount

UndervaluedFair: $15.82Overvalued

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

TXO3 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
41.0%10/10

Revenue surging 41.0% year-over-year

EPS GrowthGrowth
1437.0%10/10

Earnings expanding 1437.0% YoY

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

TXO4 concerns · Avg: 1.8/10
Market CapQuality
$678.38M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.3%2/10

ROE of -3.3% — below average capital efficiency

Profit MarginProfitability
-5.4%1/10

Currently unprofitable

Operating MarginProfitability
-21.5%1/10

Operating margin of -21.5%

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 : TXO

The strongest argument for TXO centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 41.0% demonstrates continued momentum.

Bear Case : PBR-A

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

Bear Case : TXO

The primary concerns for TXO are Market Cap, Return on Equity, Profit Margin.

Key Dynamics to Monitor

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

TXO carries more volatility with a beta of -0.01 — expect wider price swings.

TXO is growing revenue faster at 41.0% — 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 51/100), backed by strong 22.1% margins. TXO offers better value entry with a 20.4% 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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MorningStar Partners, L.P.

ENERGY · OIL & GAS E&P · USA

TXO Energy Partners, L.P. engages in the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America. The company is headquartered in Fort Worth, Texas.

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