Financial Analysis: The American Energy Group (OTCMKTS:AEGG) vs. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

The American Energy Group (OTCMKTS:AEGG) and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for The American Energy Group and Petróleo Brasileiro S.A. – Petrobras, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The American Energy Group	0	0	0	0	0.00
Petróleo Brasileiro S.A. – Petrobras	0	3	5	0	2.63

Petróleo Brasileiro S.A. – Petrobras has a consensus price target of $18.24, suggesting a potential upside of 27.60%. Given Petróleo Brasileiro S.A. – Petrobras’ stronger consensus rating and higher probable upside, analysts plainly believe Petróleo Brasileiro S.A. – Petrobras is more favorable than The American Energy Group.

Volatility & Risk

The American Energy Group has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Petróleo Brasileiro S.A. – Petrobras has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Valuation and Earnings

This table compares The American Energy Group and Petróleo Brasileiro S.A. – Petrobras”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The American Energy Group	N/A	N/A	N/A	N/A	N/A
Petróleo Brasileiro S.A. – Petrobras	$97.71 billion	0.94	$24.88 billion	$2.56	5.58

Petróleo Brasileiro S.A. – Petrobras has higher revenue and earnings than The American Energy Group.

Profitability

This table compares The American Energy Group and Petróleo Brasileiro S.A. – Petrobras’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The American Energy Group	N/A	N/A	N/A
Petróleo Brasileiro S.A. – Petrobras	16.96%	29.35%	10.79%

Summary

Petróleo Brasileiro S.A. – Petrobras beats The American Energy Group on 8 of the 8 factors compared between the two stocks.

About The American Energy Group

The American Energy Group, Ltd. operates as an energy resource royalty company. The company holds 18% interest in the Yasin (2768-7) Block in Pakistan; and interests in two oil and gas leases in Galveston County, Texas. It also holds a 2.5% working interest in the Sanjawi Block No. 3068-2, Zone II that covers an area of 2,258 square kilometer located in Baluchistan Province; and Zamzama North Block No. 2667-8, Zone III that covers an area of 1,229 square kilometer located in Sindh Province. The company was formerly known as Belize-American Corp. Internationale and changed its name to The American Energy Group, Ltd. in November 1994. The American Energy Group, Ltd. was incorporated in 1987 and is headquartered in Westport, Connecticut.

About Petróleo Brasileiro S.A. – Petrobras

Petróleo Brasileiro S.A. – Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company operates through three segments: Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, acquisition, and exports of crude oil; and production of fertilizers, as well as holding interests in petrochemical companies. The Gas and Power segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; renewable energy businesses; low carbon services; and natural gas processing business, as well as production of biodiesel and its co-products. The company also engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. In addition, it engages in research, development, production, transport, distribution, and trading of energy. Petróleo Brasileiro S.A. – Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.