Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) vs. Sable Offshore (NYSE:SOC) Critical Review

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) and Sable Offshore (NYSE:SOC) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares Petróleo Brasileiro S.A. – Petrobras and Sable Offshore”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petróleo Brasileiro S.A. – Petrobras	$97.71 billion	0.87	$24.88 billion	$2.56	5.09
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A

Petróleo Brasileiro S.A. – Petrobras has higher revenue and earnings than Sable Offshore.

Risk and Volatility

Petróleo Brasileiro S.A. – Petrobras has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Sable Offshore has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Petróleo Brasileiro S.A. – Petrobras and Sable Offshore, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petróleo Brasileiro S.A. – Petrobras	0	3	5	0	2.63
Sable Offshore	1	0	5	0	2.67

Petróleo Brasileiro S.A. – Petrobras presently has a consensus price target of $18.24, suggesting a potential upside of 40.01%. Sable Offshore has a consensus price target of $25.00, suggesting a potential upside of 9.46%. Given Petróleo Brasileiro S.A. – Petrobras’ higher probable upside, equities analysts clearly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than Sable Offshore.

Profitability

This table compares Petróleo Brasileiro S.A. – Petrobras and Sable Offshore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petróleo Brasileiro S.A. – Petrobras	16.96%	29.35%	10.79%
Sable Offshore	N/A	-319.58%	-39.11%

Institutional and Insider Ownership

26.2% of Sable Offshore shares are owned by institutional investors. 14.3% of Sable Offshore shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Petróleo Brasileiro S.A. – Petrobras beats Sable Offshore on 7 of the 10 factors compared between the two stocks.

About Petróleo Brasileiro S.A. – Petrobras

Petróleo Brasileiro S.A. – Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company operates through three segments: Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, acquisition, and exports of crude oil; and production of fertilizers, as well as holding interests in petrochemical companies. The Gas and Power segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; renewable energy businesses; low carbon services; and natural gas processing business, as well as production of biodiesel and its co-products. The company also engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. In addition, it engages in research, development, production, transport, distribution, and trading of energy. Petróleo Brasileiro S.A. – Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.