Critical Survey: Nostrum Oil & Gas (OTCMKTS:NSTRY) & Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

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

Profitability

This table compares Nostrum Oil & Gas and Petróleo Brasileiro S.A. – Petrobras’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nostrum Oil & Gas	-8.42%	N/A	-13.93%
Petróleo Brasileiro S.A. – Petrobras	24.30%	34.44%	13.15%

Earnings & Valuation

This table compares Nostrum Oil & Gas and Petróleo Brasileiro S.A. – Petrobras’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nostrum Oil & Gas	$195.29 million	1.13	-$26.12 million	($0.37)	-12.62
Petróleo Brasileiro S.A. – Petrobras	$102.41 billion	N/A	$24.88 billion	$3.82	4.08

Petróleo Brasileiro S.A. – Petrobras has higher revenue and earnings than Nostrum Oil & Gas. Nostrum Oil & Gas is trading at a lower price-to-earnings ratio than Petróleo Brasileiro S.A. – Petrobras, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Nostrum Oil & Gas has a beta of -3118.28, suggesting that its share price is 311,928% less volatile than the S&P 500. Comparatively, Petróleo Brasileiro S.A. – Petrobras has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nostrum Oil & Gas and Petróleo Brasileiro S.A. – Petrobras, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nostrum Oil & Gas	0	0	0	0	N/A
Petróleo Brasileiro S.A. – Petrobras	0	4	5	0	2.56

Petróleo Brasileiro S.A. – Petrobras has a consensus price target of $16.76, indicating a potential upside of 7.59%. Given Petróleo Brasileiro S.A. – Petrobras’ higher possible upside, analysts plainly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than Nostrum Oil & Gas.

Summary

Petróleo Brasileiro S.A. – Petrobras beats Nostrum Oil & Gas on 10 of the 10 factors compared between the two stocks.

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC, an independent oil and gas company, engages in the exploration, development, and production of oil and gas in the pre-Caspian Basin. The company discovers and develops oil and gas reserves, as well as produces and sells crude oil, stabilized condensate, liquefied petroleum gas, and dry gas. Its principal producing asset is 100% owned Chinarevskoye field located in North-western Kazakhstan. As of December 31, 2021, the company had proved and probable reserves of 34 million barrels of oil equivalent (mmboe) and 28 mmboe of contingent resources. Nostrum Oil & Gas PLC was founded in 1997 and is based in London, the United Kingdom.

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.