Head to Head Contrast: Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) and TXNM Energy (NYSE:TXNM)

Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) and TXNM Energy (NYSE:TXNM) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Profitability

This table compares Centrais Elétricas Brasileiras S.A. – Eletrobrás and TXNM 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	26.50%	9.00%	3.82%
TXNM Energy	9.26%	9.69%	2.26%

Earnings and Valuation

This table compares Centrais Elétricas Brasileiras S.A. – Eletrobrás and TXNM Energy”s 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	1.86	$977.82 million	N/A	N/A
TXNM Energy	$1.94 billion	2.29	$88.35 million	$1.92	25.69

Centrais Elétricas Brasileiras S.A. – Eletrobrás has higher revenue and earnings than TXNM Energy.

Analyst Ratings

This is a summary of current ratings and target prices for Centrais Elétricas Brasileiras S.A. – Eletrobrás and TXNM 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	1	4.00
TXNM Energy	0	1	3	0	2.75

TXNM Energy has a consensus price target of $50.25, indicating a potential upside of 1.86%. Given TXNM Energy’s higher probable upside, analysts clearly believe TXNM Energy is more favorable than Centrais Elétricas Brasileiras S.A. – Eletrobrás.

Insider & Institutional Ownership

6.5% of Centrais Elétricas Brasileiras S.A. – Eletrobrás shares are held by institutional investors. Comparatively, 91.7% of TXNM Energy shares are held by institutional investors. 1.4% of TXNM Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Centrais Elétricas Brasileiras S.A. – Eletrobrás has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.4, suggesting that its stock price is 60% 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 1.0%. TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.1%. TXNM Energy pays out 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Centrais Elétricas Brasileiras S.A. – Eletrobrás beats TXNM Energy on 8 of the 15 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 TXNM Energy

TXNM Energy, Inc., through its subsidiaries, provides electricity and electric services in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment engages in the generation, transmission, and distribution of electricity. The segment owns and leases communications, office and other equipment, office space, vehicles, and real estate. It generates electricity using coal, natural gas and oil, and nuclear fuel and waste, as well as solar, wind, geothermal, and battery storage energy sources. The TNMP segment provides regulated transmission and distribution services. The segment also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves residential, commercial, and industrial customers and end-users of electricity in New Mexico and Texas. The company was formerly known as PNM Resources, Inc and changed its name to TXNM Energy, Inc. in August 2024. TXNM Energy, Inc. was founded in 1882 and is based in Albuquerque, New Mexico.