WallStSmart

Petroleo Brasileiro Petrobras SA ADR (PBR)vsSeadrill Limited (SDRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 35301% more annual revenue ($498.09B vs $1.41B). PBR leads profitability with a 21.6% profit margin vs -5.0%. PBR earns a higher WallStSmart Score of 66/100 (B-).

PBR

Strong Buy

66

out of 100

Grade: B-

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.08

SDRL

Buy

51

out of 100

Grade: C-

Growth: 8.0Profit: 3.5Value: 4.0Quality: 7.5
Piotroski: 4/9Altman Z: 2.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PBRUndervalued (+89.6%)

Margin of Safety

+89.6%

Fair Value

$176.60

Current Price

$17.75

$158.85 discount

UndervaluedFair: $176.60Overvalued
SDRLSignificantly Overvalued (-90.0%)

Margin of Safety

-90.0%

Fair Value

$22.64

Current Price

$44.38

$21.74 premium

UndervaluedFair: $22.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR6 strengths · Avg: 9.5/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Market CapQuality
$117.55B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

SDRL3 strengths · Avg: 9.7/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
63.1%10/10

Earnings expanding 63.1% YoY

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

Areas to Watch

PBR3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

PEG RatioValuation
4.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.2%2/10

Earnings declined 7.2%

SDRL3 concerns · Avg: 1.7/10
Return on EquityProfitability
-0.8%2/10

ROE of -0.8% — below average capital efficiency

Free Cash FlowQuality
$-35.00M2/10

Negative free cash flow — burning cash

Profit MarginProfitability
-5.0%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : PBR

The strongest argument for PBR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 32.0%.

Bull Case : SDRL

The strongest argument for SDRL centers on Price/Book, EPS Growth, Debt/Equity.

Bear Case : PBR

The primary concerns for PBR are Revenue Growth, PEG Ratio, EPS Growth.

Bear Case : SDRL

The primary concerns for SDRL are Return on Equity, Free Cash Flow, Profit Margin.

Key Dynamics to Monitor

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

SDRL carries more volatility with a beta of 1.36 — expect wider price swings.

SDRL is growing revenue faster at 8.8% — sustainability is the question.

PBR generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

PBR scores higher overall (66/100 vs 51/100), backed by strong 21.6% margins. 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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Seadrill Limited

ENERGY · OIL & GAS DRILLING · USA

Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry globally. The company is headquartered in Hamilton, Bermuda.

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