Head-To-Head Survey: Sanchez Energy (OTCMKTS:SNEC) & Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

Sanchez Energy (OTCMKTS:SNEC) and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Risk and Volatility

Sanchez Energy has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Petróleo Brasileiro S.A. – Petrobras has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Profitability

This table compares Sanchez Energy and Petróleo Brasileiro S.A. – Petrobras’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sanchez Energy	2.22%	-18.15%	3.09%
Petróleo Brasileiro S.A. – Petrobras	22.46%	31.07%	11.66%

Insider & Institutional Ownership

0.6% of Sanchez Energy shares are owned by institutional investors. 11.1% of Sanchez Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Sanchez Energy and Petróleo Brasileiro S.A. – Petrobras’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanchez Energy	$1.06 billion	0.00	$85.21 million	N/A	N/A
Petróleo Brasileiro S.A. – Petrobras	$102.41 billion	N/A	$24.88 billion	$3.44	4.09

Petróleo Brasileiro S.A. – Petrobras has higher revenue and earnings than Sanchez Energy.

Analyst Recommendations

This is a breakdown of current ratings for Sanchez Energy and Petróleo Brasileiro S.A. – Petrobras, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanchez Energy	0	0	0	0	N/A
Petróleo Brasileiro S.A. – Petrobras	0	5	3	0	2.38

Petróleo Brasileiro S.A. – Petrobras has a consensus target price of $16.33, indicating a potential upside of 15.99%.

Summary

Petróleo Brasileiro S.A. – Petrobras beats Sanchez Energy on 6 of the 9 factors compared between the two stocks.

About Sanchez Energy

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2018, the company had assembled approximately 271,000 net acres in the Eagle Ford Shale; and owned approximately 34,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.

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 Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. It 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. 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, marketing, and trading of crude oil and oil products; exportation of ethanol; and extraction and processing of shale, 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; holding interests in transportation and distribution of natural gas; and fertilizer production and natural gas processing business. In addition, the company produces biodiesel and its co-products, and ethanol; and distributes oil products. Further, 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.