WallStSmart

Petroleo Brasileiro Petrobras SA ADR (PBR)vsSouthern Company (SO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 1563% more annual revenue ($491.45B vs $29.55B). PBR leads profitability with a 15.8% profit margin vs 14.7%. PBR appears more attractively valued with a PEG of 0.33. PBR earns a higher WallStSmart Score of 69/100 (B-).

PBR

Strong Buy

69

out of 100

Grade: B-

Growth: 2.7Profit: 8.0Value: 8.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.35

SO

Buy

54

out of 100

Grade: C-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PBRUndervalued (+3.6%)

Margin of Safety

+3.6%

Fair Value

$16.42

Current Price

$19.82

$3.40 discount

UndervaluedFair: $16.42Overvalued
SOSignificantly Overvalued (-254.9%)

Margin of Safety

-254.9%

Fair Value

$26.66

Current Price

$94.61

$67.95 premium

UndervaluedFair: $26.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR6 strengths · Avg: 9.5/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
6.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Operating MarginProfitability
36.2%10/10

Strong operational efficiency at 36.2%

Market CapQuality
$84.28B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.84B8/10

Generating 2.8B in free cash flow

SO2 strengths · Avg: 8.5/10
Market CapQuality
$105.91B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

PBR3 concerns · Avg: 2.7/10
EPS GrowthGrowth
0.5%4/10

0.5% earnings growth

Revenue GrowthGrowth
-1.3%2/10

Revenue declined 1.3%

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.672/10

Expensive relative to growth rate

EPS GrowthGrowth
-22.1%2/10

Earnings declined 22.1%

Free Cash FlowQuality
$-1.86B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PBR

The strongest argument for PBR centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 15.8% and operating margin at 36.2%. PEG of 0.33 suggests the stock is reasonably priced for its growth.

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.

Bear Case : PBR

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

Bear Case : SO

The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

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

SO carries more volatility with a beta of 0.41 — expect wider price swings.

SO is growing revenue faster at 10.1% — sustainability is the question.

PBR generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

PBR scores higher overall (69/100 vs 54/100), backed by strong 15.8% 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.

Petroleo Brasileiro Petrobras SA ADR

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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Southern Company

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.

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