Companhia Paranaense de Energia (NYSE:ELP) and Algonquin Power & Utilities (NYSE:AQN) are both mid-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Companhia Paranaense de Energia pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. Algonquin Power & Utilities pays an annual dividend of $0.56 per share and has a dividend yield of 4.4%. Companhia Paranaense de Energia pays out 7.4% of its earnings in the form of a dividend. Algonquin Power & Utilities pays out 84.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Companhia Paranaense de Energia and Algonquin Power & Utilities’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Companhia Paranaense de Energia||$3.92 billion||0.95||$384.97 million||$1.35||10.13|
|Algonquin Power & Utilities||$1.65 billion||3.77||$184.99 million||$0.66||19.15|
Companhia Paranaense de Energia has higher revenue and earnings than Algonquin Power & Utilities. Companhia Paranaense de Energia is trading at a lower price-to-earnings ratio than Algonquin Power & Utilities, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Companhia Paranaense de Energia and Algonquin Power & Utilities, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Companhia Paranaense de Energia||0||3||1||0||2.25|
|Algonquin Power & Utilities||0||4||3||1||2.63|
Algonquin Power & Utilities has a consensus target price of $12.21, indicating a potential downside of 3.37%. Given Algonquin Power & Utilities’ stronger consensus rating and higher probable upside, analysts plainly believe Algonquin Power & Utilities is more favorable than Companhia Paranaense de Energia.
This table compares Companhia Paranaense de Energia and Algonquin Power & Utilities’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Companhia Paranaense de Energia||10.21%||9.49%||4.41%|
|Algonquin Power & Utilities||15.57%||7.64%||2.86%|
Insider & Institutional Ownership
0.7% of Companhia Paranaense de Energia shares are held by institutional investors. Comparatively, 46.1% of Algonquin Power & Utilities shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Companhia Paranaense de Energia has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Algonquin Power & Utilities has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
Algonquin Power & Utilities beats Companhia Paranaense de Energia on 10 of the 16 factors compared between the two stocks.
Companhia Paranaense de Energia Company Profile
Companhia Paranaense de Energia COPEL engages in the generation, transmission, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers primarily in the State of Paraná, Brazil. As of December 31, 2017, the company operated 17 hydroelectric plants, 12 wind plants, and 1 thermoelectric plant with a total installed capacity of 5,024.0 megawatts; and owned and operated 2,698.3 kilometers of transmission lines and 196,951.2 kilometers of distribution lines. It holds concessions to distribute electricity in 394 municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. The company also provides telecommunication services to corporate clients, including supermarkets, universities, banks, Internet service providers, and television networks, as well as to retail clients; and broadband Internet access to public elementary and middle schools. In addition, it supplies piped gas to 39,377 customers, including thermoelectric plants, cogeneration plants, gas stations, other businesses, and residences through a gas distribution network covering 812 kilometers in the State of Paraná. Companhia Paranaense de Energia – COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.
Algonquin Power & Utilities Company Profile
Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada and the United States. It generates and sells electrical energy through a portfolio of non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with a combined gross generating capacity of approximately 1.5 gigawatt; a portfolio of regulated electric, natural gas, water distribution, and wastewater collection utility systems. It serves approximately 266,000 electric connections; 338,000 natural gas connections; and 164,000 regulated water distribution and wastewater collection utility systems in the states of California, New Hampshire, Missouri, Kansas, Oklahoma, Arkansas, Georgia, Illinois, Iowa, Massachusetts, Arizona, and Texas. The company was incorporated in 1988 and is headquartered in Oakville, Canada.
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