WallStSmart

Petroleo Brasileiro Petrobras SA ADR (PBR)vsTransocean Ltd (RIG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 12449% more annual revenue ($497.55B vs $3.96B). PBR leads profitability with a 22.1% profit margin vs -73.5%. PBR appears more attractively valued with a PEG of 0.38. PBR earns a higher WallStSmart Score of 76/100 (B+).

PBR

Strong Buy

76

out of 100

Grade: B+

Growth: 4.0Profit: 9.0Value: 8.3Quality: 4.5
Piotroski: 5/9Altman Z: 1.35

RIG

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 4.0Value: 6.3Quality: 3.8
Piotroski: 3/9Altman Z: 0.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PBR.

RIGUndervalued (+20.5%)

Margin of Safety

+20.5%

Fair Value

$8.00

Current Price

$6.82

$1.18 discount

UndervaluedFair: $8.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR6 strengths · Avg: 9.2/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Market CapQuality
$141.97B9/10

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

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

RIG2 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
23.2%8/10

Strong operational efficiency at 23.2%

Areas to Watch

PBR2 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

RIG4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-31.7%2/10

ROE of -31.7% — below average capital efficiency

Altman Z-ScoreHealth
0.202/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : PBR

The strongest argument for PBR 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 0.38 suggests the stock is reasonably priced for its growth.

Bull Case : RIG

The strongest argument for RIG centers on Price/Book, Operating Margin. PEG of 1.17 suggests the stock is reasonably priced for its growth.

Bear Case : PBR

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

Bear Case : RIG

The primary concerns for RIG are EPS Growth, Piotroski F-Score, Return on Equity.

Key Dynamics to Monitor

PBR profiles as a value stock while RIG is a turnaround play — different risk/reward profiles.

RIG carries more volatility with a beta of 1.38 — expect wider price swings.

RIG is growing revenue faster at 9.6% — sustainability is the question.

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

Bottom Line

PBR scores higher overall (76/100 vs 57/100), backed by strong 22.1% margins. RIG offers better value entry with a 20.5% margin of safety. Both earn "Strong Buy" and "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.

Petroleo Brasileiro Petrobras SA ADR

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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Transocean Ltd

ENERGY · OIL & GAS DRILLING · USA

Transocean Ltd., provides offshore contract drilling services for oil and gas wells globally. The company is headquartered in Steinhausen, Switzerland.

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