WallStSmart

Petroleo Brasileiro Petrobras SA ADR (PBR)vsTarga Resources Inc (TRGP)

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Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 3176% more annual revenue ($548.49B vs $16.74B). PBR leads profitability with a 24.3% profit margin vs 13.6%. TRGP appears more attractively valued with a PEG of 1.23. PBR earns a higher WallStSmart Score of 84/100 (A-).

PBR

Exceptional Buy

84

out of 100

Grade: A-

Growth: 7.3Profit: 9.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.11

TRGP

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 8.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 1.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PBRUndervalued (+88.9%)

Margin of Safety

+88.9%

Fair Value

$187.43

Current Price

$20.63

$166.80 discount

UndervaluedFair: $187.43Overvalued

Intrinsic value data unavailable for TRGP.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR6 strengths · Avg: 9.8/10
P/E RatioValuation
5.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
44.7%10/10

Strong operational efficiency at 44.7%

Revenue GrowthGrowth
42.3%10/10

Revenue surging 42.3% year-over-year

EPS GrowthGrowth
96.8%10/10

Earnings expanding 96.8% YoY

Market CapQuality
$134.04B9/10

Large-cap with strong market position

TRGP4 strengths · Avg: 8.8/10
Return on EquityProfitability
61.9%10/10

Every $100 of equity generates 62 in profit

Market CapQuality
$62.24B9/10

Large-cap with strong market position

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

EPS GrowthGrowth
23.3%8/10

Earnings expanding 23.3% YoY

Areas to Watch

PBR1 concerns · Avg: 2.0/10
PEG RatioValuation
5.962/10

Expensive relative to growth rate

TRGP4 concerns · Avg: 3.5/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
19.8x4/10

Trading at 19.8x book value

Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Altman Z-ScoreHealth
1.272/10

Distress zone — elevated risk

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 24.3% and operating margin at 44.7%. Revenue growth of 42.3% demonstrates continued momentum.

Bull Case : TRGP

The strongest argument for TRGP centers on Return on Equity, Market Cap, Operating Margin. PEG of 1.23 suggests the stock is reasonably priced for its growth.

Bear Case : PBR

The primary concerns for PBR are PEG Ratio.

Bear Case : TRGP

The primary concerns for TRGP are P/E Ratio, Price/Book, Revenue Growth. Debt-to-equity of 5.51 is elevated, increasing financial risk.

Key Dynamics to Monitor

PBR profiles as a growth stock while TRGP is a value play — different risk/reward profiles.

TRGP carries more volatility with a beta of 0.72 — expect wider price swings.

PBR is growing revenue faster at 42.3% — sustainability is the question.

PBR generates stronger free cash flow (7.3B), providing more financial flexibility.

Bottom Line

PBR scores higher overall (84/100 vs 66/100), backed by strong 24.3% margins and 42.3% revenue growth. Both earn "Exceptional 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.

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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Targa Resources Inc

ENERGY · OIL & GAS MIDSTREAM · USA

Targa Resources Corp. The company is headquartered in Houston, Texas.

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