WallStSmart

Petróleo Brasileiro S.A. - Petrobras (PBR-A)vsPhillips 66 (PSX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petróleo Brasileiro S.A. - Petrobras generates 276% more annual revenue ($497.55B vs $132.38B). PBR-A leads profitability with a 22.1% profit margin vs 3.3%. PBR-A appears more attractively valued with a PEG of 0.30. PBR-A earns a higher WallStSmart Score of 75/100 (B).

PBR-A

Strong Buy

75

out of 100

Grade: B

Growth: 4.0Profit: 9.0Value: 10.0Quality: 4.5
Piotroski: 5/9Altman Z: 1.35

PSX

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 5.5Value: 8.7Quality: 6.5
Piotroski: 5/9Altman Z: 3.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PBR-AUndervalued (+37.8%)

Margin of Safety

+37.8%

Fair Value

$23.71

Current Price

$18.80

$4.91 discount

UndervaluedFair: $23.71Overvalued
PSXUndervalued (+68.0%)

Margin of Safety

+68.0%

Fair Value

$504.97

Current Price

$188.28

$316.69 discount

UndervaluedFair: $504.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR-A6 strengths · Avg: 9.2/10
PEG RatioValuation
0.3010/10

Growing faster than its price suggests

P/E RatioValuation
6.0x10/10

Attractively priced relative to earnings

Market CapQuality
$122.82B9/10

Large-cap with strong market position

Return on EquityProfitability
28.2%9/10

Every $100 of equity generates 28 in profit

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

PSX6 strengths · Avg: 8.8/10
EPS GrowthGrowth
242728.0%10/10

Earnings expanding 242728.0% YoY

Altman Z-ScoreHealth
3.2010/10

Safe zone — low bankruptcy risk

Market CapQuality
$75.45B9/10

Large-cap with strong market position

PEG RatioValuation
0.578/10

Growing faster than its price suggests

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

PBR-A2 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.5%4/10

0.5% earnings growth

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

PSX3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Profit MarginProfitability
3.3%3/10

3.3% margin — thin

Operating MarginProfitability
2.8%3/10

Operating margin of 2.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : PBR-A

The strongest argument for PBR-A centers on PEG Ratio, P/E Ratio, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 26.9%. PEG of 0.30 suggests the stock is reasonably priced for its growth.

Bull Case : PSX

The strongest argument for PSX centers on EPS Growth, Altman Z-Score, Market Cap. PEG of 0.57 suggests the stock is reasonably priced for its growth.

Bear Case : PBR-A

The primary concerns for PBR-A are EPS Growth, Altman Z-Score.

Bear Case : PSX

The primary concerns for PSX are Revenue Growth, Profit Margin, Operating Margin. Thin 3.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

PSX carries more volatility with a beta of 0.87 — expect wider price swings.

PBR-A is growing revenue faster at 5.0% — sustainability is the question.

PBR-A generates stronger free cash flow (3.2B), providing more financial flexibility.

Monitor OIL & GAS INTEGRATED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PBR-A scores higher overall (75/100 vs 66/100), backed by strong 22.1% margins. PSX offers better value entry with a 68.0% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Petróleo Brasileiro S.A. - Petrobras

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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Phillips 66

ENERGY · OIL & GAS REFINING & MARKETING · USA

The Phillips 66 Company is an American multinational energy company headquartered in Westchase, Houston, Texas.

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