Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) & CenterPoint Energy (NYSE:CNP) Head-To-Head Survey

Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) and CenterPoint Energy (NYSE:CNP) 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

Centrais Elétricas Brasileiras S.A. – Eletrobrás pays an annual dividend of $0.06 per share and has a dividend yield of 0.8%. CenterPoint Energy pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. CenterPoint Energy pays out 56.3% of its earnings in the form of a dividend.

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.