Analyzing YPF (YPF) & Petrobras Argentina (PZE)

YPF (NYSE: YPF) and Petrobras Argentina (NYSE:PZE) are both mid-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Earnings and Valuation

This table compares YPF and Petrobras Argentina’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YPF $14.27 billion 0.69 -$1.91 billion $0.28 89.46
Petrobras Argentina $1.97 billion 1.45 -$1.00 million ($0.04) -354.50

Petrobras Argentina has lower revenue, but higher earnings than YPF. Petrobras Argentina is trading at a lower price-to-earnings ratio than YPF, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares YPF and Petrobras Argentina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
YPF 0.89% 1.71% 0.49%
Petrobras Argentina N/A N/A N/A

Dividends

YPF pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. Petrobras Argentina does not pay a dividend. YPF pays out 35.7% of its earnings in the form of a dividend. YPF has increased its dividend for 2 consecutive years.

Institutional and Insider Ownership

28.9% of YPF shares are held by institutional investors. 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for YPF and Petrobras Argentina, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YPF 0 0 4 0 3.00
Petrobras Argentina 0 0 0 0 N/A

YPF presently has a consensus target price of $28.00, suggesting a potential upside of 11.78%. Given YPF’s higher probable upside, equities analysts clearly believe YPF is more favorable than Petrobras Argentina.

Volatility & Risk

YPF has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500. Comparatively, Petrobras Argentina has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Summary

YPF beats Petrobras Argentina on 12 of the 15 factors compared between the two stocks.

About YPF

YPF Sociedad Anonima (YPF) is an energy company. The Company is operating a fully integrated oil and gas chain. The Company operates through the segments, including Exploration and Production, Downstream, and Corporate and Other. The Company’s Exploration and Production segment includes exploration and production activities, natural gas and crude oil purchases, sales of natural gas, and to a lesser extent crude oil, to third parties and intersegment sales of crude oil, natural gas and its byproducts. The Company’s Downstream segment is engaged in the refining, transport, purchase of crude oil and natural gas from third parties and intersegment sales, and marketing of crude oil, natural gas, refined products, petrochemicals, electric power generation and natural gas distribution. The Company’s Corporate and Other segment carries out other activities.

About Petrobras Argentina

Petrobras Argentina SA, formerly Petrobras Energia SA, is an Argentina-based company primarily engaged in the petroleum refining sector. The Company’s activities are structured in four business segments: Oil and Gas Exploration and Production, including the acquisition, exploration, exploitation and maintenance of oil and gas reserves; Refining and Distribution, processing and marketing of petroleum products; Petrochemicals, comprising the production of styrene, polystyrene, bi-oriented polystyrene (BOPS) and synthetic rubber; as well as Gas and Energy, providing gas distribution, as well as fossil fuel and hydroelectric power energy generation. Its petroleum products include lubricants, diesel fuel, compressed natural gas (CNG) and asphalts, among others. The Company has operations established in Argentina, Bolivia, Ecuador, Venezuela, Mexico and Spain, among others. The Company is owned by Petrobras Participaciones SL. It operates throught Albares Renovables Argentina SA.

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