EC vs PBR

For growth investors, Petróleo Brasileiro S.

A. - Petrobras (PBR) is the stronger pick with -13. 4% revenue growth year-over-year, versus -16. 4% for Ecopetrol S. A. (EC). Petróleo Brasileiro S. A. - Petrobras (PBR) offers the better valuation at 8. 9x trailing P/E (5. 6x forward), making it the more compelling value choice. Analysts rate Petróleo Brasileiro S. A. - Petrobras (PBR) a "Buy" — based on 22 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Petróleo Brasileiro S.

A. - Petrobras (PBR) is the cheapest at 8. 9x versus Ecopetrol S. A. at 12. 1x. On forward P/E, Ecopetrol S. A. is actually cheaper at 0. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Ecopetrol S. A. wins at 0. 00x versus Petróleo Brasileiro S. A. - Petrobras's 0. 13x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Petróleo Brasileiro S.

A. - Petrobras (PBR) delivered a total return of +309. 2%, compared to +81. 8% for Ecopetrol S. A. (EC). Over 10 years, the gap is even starker: PBR returned +399. 3% versus EC's +175. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ecopetrol S.

A. (EC) is the lower-risk stock at 0. 03β versus Petróleo Brasileiro S. A. - Petrobras's 0. 13β — meaning PBR is approximately 413% more volatile than EC relative to the S&P 500. On balance sheet safety, Ecopetrol S. A. (EC) carries a lower debt/equity ratio of 100% versus 102% for Petróleo Brasileiro S. A. - Petrobras — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Petróleo Brasileiro S.

A. - Petrobras (PBR) is pulling ahead at -13. 4% versus -16. 4% for Ecopetrol S. A. (EC). On earnings-per-share growth, the picture is similar: Ecopetrol S. A. grew EPS -39. 5% year-over-year, compared to -70. 3% for Petróleo Brasileiro S. A. - Petrobras. Over a 3-year CAGR, PBR leads at 2. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Petróleo Brasileiro S.

A. - Petrobras (PBR) is the more profitable company, earning 8. 2% net margin versus 7. 5% for Ecopetrol S. A. — meaning it keeps 8. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PBR leads at 28. 1% versus 22. 3% for EC. At the gross margin level — before operating expenses — PBR leads at 50. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Ecopetrol S. A. (EC) is the more undervalued stock at a PEG of 0. 00x versus Petróleo Brasileiro S. A. - Petrobras's 0. 13x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Ecopetrol S. A. (EC) trades at 0. 0x forward P/E versus 5. 6x for Petróleo Brasileiro S. A. - Petrobras — 5. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PBR: -10. 7% to $18. 67.

All stocks in this comparison pay dividends.

Petróleo Brasileiro S. A. - Petrobras (PBR) offers the highest yield at 27. 2%, versus 10. 8% for Ecopetrol S. A. (EC).

For long-horizon retirement investors, Petróleo Brasileiro S.

A. - Petrobras (PBR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 13), 27. 2% yield, +399. 3% 10Y return). Both have compounded well over 10 years (PBR: +399. 3%, EC: +175. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.