Head-To-Head Contrast: CPFL Energia (NYSE:CPL) & CENTRAIS ELETRI/S (EBR)

CPFL Energia (NYSE:CPL) and CENTRAIS ELETRI/S (NYSE:EBR) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Dividends

CPFL Energia pays an annual dividend of $0.22 per share and has a dividend yield of 1.5%. CENTRAIS ELETRI/S does not pay a dividend. CPFL Energia has increased its dividend for 5 consecutive years.

Profitability

This table compares CPFL Energia and CENTRAIS ELETRI/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CPFL Energia 7.66% 17.52% 5.01%
CENTRAIS ELETRI/S -9.19% 31.53% 9.24%

Institutional & Insider Ownership

0.4% of CPFL Energia shares are held by institutional investors. Comparatively, 0.5% of CENTRAIS ELETRI/S shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CPFL Energia and CENTRAIS ELETRI/S, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CPFL Energia 1 0 0 0 1.00
CENTRAIS ELETRI/S 1 0 0 0 1.00

Risk and Volatility

CPFL Energia has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, CENTRAIS ELETRI/S has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Earnings and Valuation

This table compares CPFL Energia and CENTRAIS ELETRI/S’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CPFL Energia $7.65 billion 1.00 $563.08 million N/A N/A
CENTRAIS ELETRI/S $6.83 billion 1.67 $4.11 billion N/A N/A

CENTRAIS ELETRI/S has lower revenue, but higher earnings than CPFL Energia.

About CPFL Energia

CPFL Energia S.A., together with its subsidiaries, generates, transmits, distributes, and commercializes electricity to residential, industrial, and commercial customers in Brazil. The company generates electricity through wind, biomass-powered thermal, solar, and hydroelectric power plants. It also manufactures, commercializes, rents, and maintains electro-mechanical equipment; and offers administrative, call center, collection, IT, telecommunication, energy transmission, and energy efficiency management services, as well as maintenance services for energy generation companies. As of December 31, 2017, the company distributed electricity to approximately 9.4 million customers; and had 318,018 kilometers of distribution lines, which included 457,741 distribution transformers. It also has an installed capacity of 3,284 megawatts. CPFL Energia S.A. was founded in 1998 and is headquartered in Campinas, Brazil. CPFL Energia S.A. is a subsidiary of State Grid Brazil Power Participações Ltda.

About CENTRAIS ELETRI/S

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 thermal, nuclear, wind, and hydroelectric plants. As of December 31, 2017, it owned and operated 44 hydroelectric plants and held interests in various other plants with a total installed capacity of 42,350 Megawatts (MW); 112 thermal plants, including coal, and oil and gas power generation units with an installed capacity of 2,646 MW; and 2 nuclear power plants with an installed capacity of 1,990 MW. The company also operates 71,684 kilometers of transmission lines and 6 power distributors that serve approximately 4.4 million consumers. Centrais Elétricas Brasileiras S.A. – Eletrobrás was founded in 1962 and is based in Rio de Janeiro, Brazil.

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