Contrasting Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) & Gear Energy (OTCMKTS:GENGF)

Gear Energy (OTCMKTS:GENGF) and Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares Gear Energy and Petroleo Brasileiro S.A.- Petrobras’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gear Energy	N/A	N/A	N/A
Petroleo Brasileiro S.A.- Petrobras	24.52%	31.82%	11.14%

Valuation and Earnings

This table compares Gear Energy and Petroleo Brasileiro S.A.- Petrobras”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gear Energy	N/A	N/A	N/A	$0.26	1.29
Petroleo Brasileiro S.A.- Petrobras	$89.19 billion	1.30	$19.63 billion	$3.08	5.84

Petroleo Brasileiro S.A.- Petrobras has higher revenue and earnings than Gear Energy. Gear Energy is trading at a lower price-to-earnings ratio than Petroleo Brasileiro S.A.- Petrobras, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Gear Energy and Petroleo Brasileiro S.A.- Petrobras, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gear Energy	0	0	0	0	0.00
Petroleo Brasileiro S.A.- Petrobras	1	1	5	0	2.57

Petroleo Brasileiro S.A.- Petrobras has a consensus target price of $19.28, suggesting a potential upside of 7.25%. Given Petroleo Brasileiro S.A.- Petrobras’ stronger consensus rating and higher possible upside, analysts clearly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than Gear Energy.

Insider and Institutional Ownership

40.0% of Gear Energy shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Petroleo Brasileiro S.A.- Petrobras beats Gear Energy on 9 of the 10 factors compared between the two stocks.

About Gear Energy

Gear Energy Ltd., an exploration and production company, engages in the acquiring, developing, and holding of interests in petroleum and natural gas properties and assets in Canada. The company's oil properties are located in Central Alberta, West Central Saskatchewan, and Southeast Saskatchewan. Gear Energy Ltd. is headquartered in Calgary, Canada.

About Petroleo 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.