Head to Head Contrast: CENTRAIS ELETRI/S (EBR) versus Pampa Energia (PAM)

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

Profitability

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

Net Margins Return on Equity Return on Assets
CENTRAIS ELETRI/S -2.73% -1.96% -0.55%
Pampa Energia 5.30% 8.21% 1.43%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CENTRAIS ELETRI/S 1 0 0 0 1.00
Pampa Energia 1 0 5 0 2.67

Pampa Energia has a consensus price target of $57.25, indicating a potential upside of 58.85%. Given Pampa Energia’s stronger consensus rating and higher possible upside, analysts clearly believe Pampa Energia is more favorable than CENTRAIS ELETRI/S.

Institutional and Insider Ownership

0.6% of CENTRAIS ELETRI/S shares are held by institutional investors. Comparatively, 35.9% of Pampa Energia shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CENTRAIS ELETRI/S and Pampa Energia’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CENTRAIS ELETRI/S $7.05 billion 1.27 -$552.42 million N/A N/A
Pampa Energia $3.05 billion 0.87 $342.46 million $3.55 10.15

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

Volatility and Risk

CENTRAIS ELETRI/S has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Pampa Energia has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Summary

Pampa Energia beats CENTRAIS ELETRI/S on 9 of the 11 factors compared between the two stocks.

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 headquartered in Brasília, Brazil.

About Pampa Energia

Pampa Energía S.A., an integrated electricity company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Argentina. The company generates electricity through combined cycle gas-fired generating units, thermal generation plants, open-cycle gas turbines, and hydroelectric power generation systems, as well as through a wind farm. As of December 31, 2017, it had an electricity generation installed capacity of approximately 3,756 megawatts; 3 million electricity distribution customers in the northern region of the City of Buenos Aires and northwest of the greater Buenos Aires area; and 20,718 kilometers of high voltage transmission lines. The company is also involved in the exploration and production, and refining and distribution of oil and gas in Argentina, Venezuela, and Ecuador. In addition, it offers petrochemicals, such as intermediate gasoline products, aromatic solvents, hexane and other hydrogenated paraffinic solvents, and propellants for the cosmetic industry; and monomer styrene, and rubber and polymer products from natural gas, virgin naphtha, propane, and other supplies. As of December 31, 2017, the company had combined crude oil and natural gas proved reserves of approximately 167.1 million barrels of oil equivalent; one fully owned refinery with an installed capacity of approximately 30.2 thousand barrels per day; two storage plants with a capacity of approximately 1.2 million barrels; one lubricant plant; and three fully-owned petrochemical plants. It also operated a network of 250 gas stations. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was founded in 1945 and is headquartered in Buenos Aires, Argentina.

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