Head-To-Head Analysis: Spruce Power (NYSE:SPRU) versus Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR)

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

Profitability

This table compares Centrais Elétricas Brasileiras S.A. – Eletrobrás and Spruce Power’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%
Spruce Power	-121.98%	-23.98%	-5.48%

Valuation & Earnings

This table compares Centrais Elétricas Brasileiras S.A. – Eletrobrás and Spruce Power”s 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	1.88	$977.82 million	$0.72	8.44
Spruce Power	$77.58 million	0.55	-$65.83 million	($5.06)	-0.45

Centrais Elétricas Brasileiras S.A. – Eletrobrás has higher revenue and earnings than Spruce Power. Spruce Power is trading at a lower price-to-earnings ratio than Centrais Elétricas Brasileiras S.A. – Eletrobrás, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Centrais Elétricas Brasileiras S.A. – Eletrobrás and Spruce Power, 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
Spruce Power	0	0	0	0	0.00

Volatility & Risk

Centrais Elétricas Brasileiras S.A. – Eletrobrás has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Spruce Power has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Institutional and Insider Ownership

6.5% of Centrais Elétricas Brasileiras S.A. – Eletrobrás shares are held by institutional investors. Comparatively, 20.8% of Spruce Power shares are held by institutional investors. 9.6% of Spruce Power shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Centrais Elétricas Brasileiras S.A. – Eletrobrás beats Spruce Power on 10 of the 13 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 Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.