WallStSmart

Petroleo Brasileiro Petrobras SA ADR (PBR)vsValaris Ltd (VAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 25558% more annual revenue ($548.49B vs $2.14B). VAL leads profitability with a 44.0% profit margin vs 24.3%. PBR trades at a lower P/E of 5.1x. 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

VAL

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PBRUndervalued (+88.9%)

Margin of Safety

+88.9%

Fair Value

$187.43

Current Price

$20.80

$166.63 discount

UndervaluedFair: $187.43Overvalued

Intrinsic value data unavailable for VAL.

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
1.4x10/10

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
$129.66B9/10

Large-cap with strong market position

VAL4 strengths · Avg: 9.5/10
P/E RatioValuation
6.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
31.8%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
44.0%10/10

Keeps 44 of every $100 in revenue as profit

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

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

Expensive relative to growth rate

VAL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-12.4%2/10

Revenue declined 12.4%

EPS GrowthGrowth
-55.3%2/10

Earnings declined 55.3%

Free Cash FlowQuality
$-92.40M2/10

Negative free cash flow — burning cash

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 : VAL

The strongest argument for VAL centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 44.0% and operating margin at 9.8%.

Bear Case : PBR

The primary concerns for PBR are PEG Ratio.

Bear Case : VAL

The primary concerns for VAL are Revenue Growth, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

PBR profiles as a growth stock while VAL is a declining play — different risk/reward profiles.

VAL carries more volatility with a beta of 0.94 — 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 52/100), backed by strong 24.3% margins and 42.3% revenue growth. Both earn "Exceptional 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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Valaris Ltd

ENERGY · OIL & GAS DRILLING · USA

Valaris Limited provides offshore contract drilling services in various water depths for the oil and gas industry globally. The company is headquartered in Hamilton, Bermuda.

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