Financial Review: Antero Resources (NYSE:AR) vs. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

Antero Resources (NYSE:AR) and Petróleo Brasileiro S.A. – Petrobras (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 profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Risk & Volatility

Antero Resources has a beta of 3.36, suggesting that its share price is 236% more volatile than the S&P 500. Comparatively, Petróleo Brasileiro S.A. – Petrobras has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Antero Resources and Petróleo Brasileiro S.A. – Petrobras, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Antero Resources	1	7	9	2	2.63
Petróleo Brasileiro S.A. – Petrobras	0	3	5	0	2.63

Antero Resources currently has a consensus price target of $32.83, indicating a potential upside of 12.33%. Petróleo Brasileiro S.A. – Petrobras has a consensus price target of $18.20, indicating a potential upside of 33.04%. Given Petróleo Brasileiro S.A. – Petrobras’ higher possible upside, analysts clearly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than Antero Resources.

Insider and Institutional Ownership

83.0% of Antero Resources shares are held by institutional investors. 6.7% of Antero Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Antero Resources	1.03%	-0.59%	-0.32%
Petróleo Brasileiro S.A. – Petrobras	16.17%	28.42%	10.53%

Valuation and Earnings

This table compares Antero Resources and Petróleo Brasileiro S.A. – Petrobras”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Antero Resources	$4.08 billion	2.23	$242.92 million	$0.14	208.79
Petróleo Brasileiro S.A. – Petrobras	$102.41 billion	N/A	$24.88 billion	$2.48	5.52

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

About Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.

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 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.