Legacy Reserves (OTCMKTS:LGCYQ) versus PETROLEO BRASIL/ADR (OTCMKTS:PBR) Financial Contrast

Legacy Reserves (OTCMKTS:LGCYQ) and PETROLEO BRASIL/ADR (NYSE:PBR) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Legacy Reserves and PETROLEO BRASIL/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Legacy Reserves 0 0 0 0 N/A
PETROLEO BRASIL/ADR 1 0 6 0 2.71

PETROLEO BRASIL/ADR has a consensus target price of $20.50, suggesting a potential upside of 35.76%. Given PETROLEO BRASIL/ADR’s higher probable upside, analysts plainly believe PETROLEO BRASIL/ADR is more favorable than Legacy Reserves.

Profitability

This table compares Legacy Reserves and PETROLEO BRASIL/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Legacy Reserves -18.46% N/A -5.33%
PETROLEO BRASIL/ADR 10.45% 10.41% 3.35%

Valuation & Earnings

This table compares Legacy Reserves and PETROLEO BRASIL/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Legacy Reserves $554.86 million 0.00 $43.83 million N/A N/A
PETROLEO BRASIL/ADR $95.58 billion 1.03 $7.17 billion $1.43 10.56

PETROLEO BRASIL/ADR has higher revenue and earnings than Legacy Reserves.

Dividends

PETROLEO BRASIL/ADR pays an annual dividend of $0.34 per share and has a dividend yield of 2.3%. Legacy Reserves does not pay a dividend. PETROLEO BRASIL/ADR pays out 23.8% of its earnings in the form of a dividend.

Volatility and Risk

Legacy Reserves has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, PETROLEO BRASIL/ADR has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Insider and Institutional Ownership

21.6% of Legacy Reserves shares are held by institutional investors. Comparatively, 7.5% of PETROLEO BRASIL/ADR shares are held by institutional investors. 0.8% of Legacy Reserves shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

PETROLEO BRASIL/ADR beats Legacy Reserves on 9 of the 13 factors compared between the two stocks.

Legacy Reserves Company Profile

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

PETROLEO BRASIL/ADR Company Profile

Petróleo Brasileiro S.A. – Petrobras operates in the oil, natural gas, and energy industries in Brazil and internationally. It 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 company's Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas primarily for supplies to the its domestic refineries. Its Refining, Transportation and Marketing segment is involved in the refining, logistics, transport, 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 company's Gas and Power segment engages in the logistic and trading of natural gas and liquid natural gas; generation of electricity through thermoelectric power plants; holding interests in transportation and distribution of natural gas; and fertilizer business operations. Its Biofuels segment is involved in the production of biodiesel and its co-products, as well as production and trading of ethanol, sugar, and electric power generated from sugarcane bagasse. The company's Distribution segment sells oil products, including gasoline and diesel; ethanol; and vehicle natural gas, as well as distributes oil products in South America. Petróleo Brasileiro S.A. – Petrobras was founded in 1953 and is headquartered in Rio de Janeiro, Brazil.

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