Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR – Get Free Report) and CenterPoint Energy (NYSE:CNP – Get Free Report) are both large-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.
Institutional and Insider Ownership
6.5% of Centrais Elétricas Brasileiras S.A. – Eletrobrás shares are held by institutional investors. Comparatively, 91.8% of CenterPoint Energy shares are held by institutional investors. 0.2% of CenterPoint Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Centrais Elétricas Brasileiras S.A. – Eletrobrás has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, CenterPoint Energy has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
Dividends
Analyst Ratings
This is a summary of current ratings and price targets for Centrais Elétricas Brasileiras S.A. – Eletrobrás and CenterPoint Energy, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Centrais Elétricas Brasileiras S.A. – Eletrobrás | 0 | 0 | 0 | 0 | N/A |
CenterPoint Energy | 1 | 8 | 2 | 0 | 2.09 |
CenterPoint Energy has a consensus price target of $29.73, indicating a potential upside of 8.89%. Given CenterPoint Energy’s higher probable upside, analysts clearly believe CenterPoint Energy is more favorable than Centrais Elétricas Brasileiras S.A. – Eletrobrás.
Earnings and Valuation
This table compares Centrais Elétricas Brasileiras S.A. – Eletrobrás and CenterPoint Energy’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Centrais Elétricas Brasileiras S.A. – Eletrobrás | $7.44 billion | 2.30 | $977.82 million | N/A | N/A |
CenterPoint Energy | $8.70 billion | 2.02 | $917.00 million | $1.42 | 19.23 |
Centrais Elétricas Brasileiras S.A. – Eletrobrás has higher earnings, but lower revenue than CenterPoint Energy.
Profitability
This table compares Centrais Elétricas Brasileiras S.A. – Eletrobrás and CenterPoint Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Centrais Elétricas Brasileiras S.A. – Eletrobrás | 13.37% | 4.18% | 1.75% |
CenterPoint Energy | 12.28% | 10.81% | 2.68% |
Summary
CenterPoint Energy beats Centrais Elétricas Brasileiras S.A. – Eletrobrás on 8 of the 13 factors compared between the two stocks.
About Centrais Elétricas Brasileiras S.A. – Eletrobrás
Centrais Elétricas Brasileiras S.A. – Eletrobrás, through its subsidiaries, engages in the generation, transmission, and commercialization of electricity in Brazil. The company generates electricity through hydroelectric, thermoelectric, nuclear, wind, and solar plants. As of December 31, 2023, it owned and operated 44 hydroelectric plants with a total capacity of 42,293.5 megawatt (MW); 5 thermal plants, including coal and gas power generation units with a total installed capacity of 1,632 MW; and two nuclear power plants comprising Angra 1 with an installed capacity of 657 MW and Angra 2 with an installed capacity of 1350 MW. It also owns and operates 66,539.17 kilometers of transmission lines. The company was incorporated in 1962 and is based in Rio De Janeiro, Brazil.
About CenterPoint Energy
CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company operates through two segments, Electric and Natural Gas. The Electric segment includes electric transmission and distribution services to electric customers and electric generation assets, as well as optimizes assets in the wholesale power market. The Natural Gas segment engages in the intrastate natural gas sales, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas; permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies; and provides maintenance and repair services of home appliances to customers in Minnesota and home repair protection plans to natural gas customers in Indiana, Mississippi, Ohio, and Texas through a third party. It serves approximately 2,534,730 metered customers; owned 348 substations with transformer capacity of 79,719 megavolt amperes; and owned and operated 217 miles of intrastate pipeline in Louisiana and Texas. The company was founded in 1866 and is headquartered in Houston, Texas.
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