WallStSmart

Petroleo Brasileiro Petrobras SA ADR (PBR)vsUltrapar Participacoes SA ADR (UGP)

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Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 258% more annual revenue ($548.49B vs $153.26B). PBR leads profitability with a 24.3% profit margin vs 2.3%. UGP appears more attractively valued with a PEG of 0.78. 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

UGP

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 7.7Quality: 6.5
Piotroski: 4/9Altman Z: 3.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PBRUndervalued (+88.9%)

Margin of Safety

+88.9%

Fair Value

$188.27

Current Price

$21.20

$167.07 discount

UndervaluedFair: $188.27Overvalued

Intrinsic value data unavailable for UGP.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR6 strengths · Avg: 9.8/10
P/E RatioValuation
5.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

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
$129.66B9/10

Large-cap with strong market position

UGP6 strengths · Avg: 9.0/10
P/E RatioValuation
11.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
90.7%10/10

Every $100 of equity generates 91 in profit

Altman Z-ScoreHealth
3.9810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.788/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
21.9%8/10

Revenue surging 21.9% year-over-year

Areas to Watch

PBR1 concerns · Avg: 2.0/10
PEG RatioValuation
5.872/10

Expensive relative to growth rate

UGP2 concerns · Avg: 3.0/10
Profit MarginProfitability
2.3%3/10

2.3% margin — thin

Debt/EquityHealth
1.093/10

Elevated debt levels

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 : UGP

The strongest argument for UGP centers on P/E Ratio, Return on Equity, Altman Z-Score. Revenue growth of 21.9% demonstrates continued momentum. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bear Case : PBR

The primary concerns for PBR are PEG Ratio.

Bear Case : UGP

The primary concerns for UGP are Profit Margin, Debt/Equity. Thin 2.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

UGP carries more volatility with a beta of 0.26 — 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.

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

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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Ultrapar Participacoes SA ADR

ENERGY · OIL & GAS REFINING & MARKETING · USA

Ultrapar Participaes SA is engaged in the gas distribution, fuel distribution, chemical products, storage and pharmacy businesses mainly in Brazil, Mexico, Uruguay, Venezuela, other Latin American countries, the United States, Canada, the Far East, Europe and internationally. The company is headquartered in So Paulo, Brazil.

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