Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN) versus Centrais El�tricas Brasileiras (NYSE:EBR) Critical Analysis

Centrais El�tricas Brasileiras (NYSE:EBR) and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

2.6% of Centrais El�tricas Brasileiras shares are held by institutional investors. Comparatively, 1.6% of Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Centrais El�tricas Brasileiras and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centrais El�tricas Brasileiras	0	0	0	1	4.00
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)	0	0	0	0	0.00

Profitability

This table compares Centrais El�tricas Brasileiras and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centrais El�tricas Brasileiras	23.69%	8.14%	3.46%
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)	10.61%	18.30%	6.38%

Volatility & Risk

Centrais El�tricas Brasileiras has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Earnings & Valuation

This table compares Centrais El�tricas Brasileiras and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centrais El�tricas Brasileiras	$7.45 billion	2.12	$1.92 billion	$0.76	9.23
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)	$2.24 billion	0.50	$299.34 million	$5.63	4.36

Centrais El�tricas Brasileiras has higher revenue and earnings than Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor). Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) is trading at a lower price-to-earnings ratio than Centrais El�tricas Brasileiras, indicating that it is currently the more affordable of the two stocks.

Summary

Centrais El�tricas Brasileiras beats Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) on 8 of the 12 factors compared between the two stocks.

About Centrais El�tricas Brasileiras

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 Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima is involved in the distribution and sale of electricity in Argentina. The company was incorporated in 1992 and is based in Buenos Aires, Argentina. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima operates as a subsidiary of Empresa de Energía del Cono Sur S.A..