Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) & TXNM Energy (NYSE:TXNM) Head-To-Head Contrast

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

Institutional & Insider Ownership

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

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.

Analyst Recommendations

This is a summary of recent ratings for Centrais Elétricas Brasileiras S.A. – Eletrobrás and TXNM Energy, as reported by MarketBeat.com.

	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 target price of $50.25, suggesting 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.

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%

Volatility and Risk

Centrais Elétricas Brasileiras S.A. – Eletrobrás has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Valuation & Earnings

This table compares Centrais Elétricas Brasileiras S.A. – Eletrobrás and TXNM Energy”s gross revenue, earnings per share (EPS) 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.

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.