SSE PLC/S (OTCMKTS:SSEZY) vs. CENTRAIS ELETRI/S (OTCMKTS:EBR) Critical Review

SSE PLC/S (OTCMKTS:SSEZY) and CENTRAIS ELETRI/S (NYSE:EBR) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Volatility & Risk

SSE PLC/S has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, CENTRAIS ELETRI/S has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of SSE PLC/S shares are owned by institutional investors. Comparatively, 0.7% of CENTRAIS ELETRI/S shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares SSE PLC/S and CENTRAIS ELETRI/S’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SSE PLC/S $9.55 billion 1.79 $1.85 billion $0.87 18.75
CENTRAIS ELETRI/S $6.83 billion 1.77 $3.30 billion N/A N/A

CENTRAIS ELETRI/S has lower revenue, but higher earnings than SSE PLC/S.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SSE PLC/S and CENTRAIS ELETRI/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SSE PLC/S 0 5 2 0 2.29
CENTRAIS ELETRI/S 1 0 0 0 1.00

Profitability

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

Net Margins Return on Equity Return on Assets
SSE PLC/S N/A N/A N/A
CENTRAIS ELETRI/S N/A 23.85% 7.29%

Dividends

SSE PLC/S pays an annual dividend of $1.66 per share and has a dividend yield of 10.2%. CENTRAIS ELETRI/S pays an annual dividend of $0.19 per share and has a dividend yield of 2.1%. SSE PLC/S pays out 190.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

SSE PLC/S beats CENTRAIS ELETRI/S on 6 of the 11 factors compared between the two stocks.

SSE PLC/S Company Profile

SSE plc engages in the generation, transmission, distribution, and supply of electricity. The company operates through three segments: Wholesale, Networks, and Retail. It generates electricity from gas, oil, coal, water, and wind. The company transmits and distributes electricity to approximately 3.7 million homes and businesses across the north of the central belt of Scotland and also central southern England; owns and maintains 132 kilovolts (KV), 275kV, and 400kV electricity transmission network; and manages 130,000 kilometers of overhead lines and underground cables, 106,000 substations, and approximately 100 subsea cables. It also produces, stores, distributes, and supplies gas; and offers other energy-related services. In addition, it engages in electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provision of corporate and maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.

CENTRAIS ELETRI/S Company Profile

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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