Critical Comparison: Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) & ReNew Energy Global (NASDAQ:RNW)

Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBRGet Rating) and ReNew Energy Global (NASDAQ:RNWGet Rating) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Institutional & Insider Ownership

2.4% of Centrais Elétricas Brasileiras S.A. – Eletrobrás shares are held by institutional investors. Comparatively, 45.9% of ReNew Energy Global shares are held by institutional investors. 8.7% of ReNew Energy Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Centrais Elétricas Brasileiras S.A. – Eletrobrás and ReNew Energy Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centrais Elétricas Brasileiras S.A. – Eletrobrás 12.75% 4.03% 1.70%
ReNew Energy Global -14.54% -8.78% -1.73%

Analyst Recommendations

This is a summary of current ratings for Centrais Elétricas Brasileiras S.A. – Eletrobrás and ReNew Energy Global, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centrais Elétricas Brasileiras S.A. – Eletrobrás 0 0 2 0 3.00
ReNew Energy Global 0 0 0 0 N/A

Centrais Elétricas Brasileiras S.A. – Eletrobrás presently has a consensus target price of $70.00, suggesting a potential upside of 756.79%. Given Centrais Elétricas Brasileiras S.A. – Eletrobrás’ higher possible upside, equities analysts clearly believe Centrais Elétricas Brasileiras S.A. – Eletrobrás is more favorable than ReNew Energy Global.

Volatility & Risk

Centrais Elétricas Brasileiras S.A. – Eletrobrás has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Earnings and Valuation

This table compares Centrais Elétricas Brasileiras S.A. – Eletrobrás and ReNew Energy Global’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 $6.97 billion 1.84 $1.05 billion $0.69 11.84
ReNew Energy Global $912.00 million 2.61 -$211.00 million ($0.35) -16.94

Centrais Elétricas Brasileiras S.A. – Eletrobrás has higher revenue and earnings than ReNew Energy Global. ReNew Energy Global is trading at a lower price-to-earnings ratio than Centrais Elétricas Brasileiras S.A. – Eletrobrás, indicating that it is currently the more affordable of the two stocks.

Summary

Centrais Elétricas Brasileiras S.A. – Eletrobrás beats ReNew Energy Global on 10 of the 13 factors compared between the two stocks.

About Centrais Elétricas Brasileiras S.A. – Eletrobrás

(Get Rating)

Centrais Elétricas Brasileiras S.A. – Eletrobras, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil. The company generates electricity through hydroelectric, thermal, nuclear, wind, and solar plants. As of December 31, 2021, it owned and operated 32 hydroelectric plants with a total installed capacity of 46,295.75 megawatts; nine thermal plants, including coal, and oil and gas power generation units with a total installed capacity of 1,505 megawatts; and two nuclear power plants comprising Angra I with an installed capacity of 640 megawatts and Angra II with an installed capacity of 1,350 megawatts. It also operates 66,556 kilometers of transmission lines. The company was incorporated in 1962 and is based in Rio de Janeiro, Brazil.

About ReNew Energy Global

(Get Rating)

ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through Wind Power and Solar Power segments. It develops, builds, owns, and operates utility scale wind and solar energy projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company also provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. As of March 31, 2022, its portfolio consisted of 10.69 GW of wind and solar energy projects, hydro, firm power projects, and distributed solar energy projects, of which 7.57 GW projects were commissioned and 3.12 GW were committed. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.

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