Reviewing CPFL Energia (CPL) & NV Energy (NVE)

CPFL Energia (NYSE: CPL) and NV Energy (NYSE:NVE) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for CPFL Energia and NV Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CPFL Energia 0 1 0 0 2.00
NV Energy 0 0 0 0 N/A

Profitability

This table compares CPFL Energia and NV Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CPFL Energia 3.50% 7.35% 1.90%
NV Energy N/A N/A N/A

Dividends

CPFL Energia pays an annual dividend of $0.12 per share and has a dividend yield of 0.7%. NV Energy does not pay a dividend. CPFL Energia pays out 26.1% of its earnings in the form of a dividend. NV Energy has increased its dividend for 3 consecutive years.

Earnings and Valuation

This table compares CPFL Energia and NV Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CPFL Energia $6.85 billion 1.26 $1.30 billion $0.46 36.76
NV Energy N/A N/A N/A N/A N/A

CPFL Energia has higher revenue and earnings than NV Energy.

Institutional & Insider Ownership

1.9% of CPFL Energia shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

CPFL Energia beats NV Energy on 6 of the 8 factors compared between the two stocks.

About CPFL Energia

CPFL Energia S.A. is a holding company. The Company, through its subsidiaries, distributes, generates, transmits and commercializes electricity in Brazil, as well as provides energy-related services. Its segments include Distribution, Conventional Generation Sources, Renewable Energy Generation, Commercialization and Services. The Company operates its distribution segment through its eight distributors. Its installed capacity in conventional generation is approximately 2,200 megawatt (MW). The Company, through its subsidiary CPFL Geracao, holds equity interests in eight Hydroelectric Power Plants. It operates in the segment of generation of energy of renewable sources, such as wind, biomass thermal plants, SHPPs and solar, through its subsidiary, CPFL Renovaveis. The Company operates in the segment of commercialization (power competitive supply) through its subsidiary, CPFL Brasil. The Company operates in the segment of value-added services providing electricity-related services.

About NV Energy

NV Energy, Inc. (NVE) is an investor-owned holding company. NVE has four primary, wholly owned subsidiaries: Nevada Power Company (NPC), doing business as NV Energy, Sierra Pacific Power Company (SPPC) doing business as NV Energy, NVE Insurance Company, Inc. and Lands of Sierra. The NPC and SPPC (Utilities) operate three business segments: NPC electric; SPPC electric, and SPPC natural gas. Electric service is provided by NPC to Las Vegas and surrounding Clark County, and by SPPC to northern Nevada. Natural gas service is provided by SPPC in the Reno-Sparks area of Nevada. Nevada Electrical Investment Company (NEICO) is a wholly owned subsidiary of NPC. On December 19, 2013, MidAmerican Energy Holdings Company (MidAmerican) completed the merger of NV Energy, Inc. (NVE) and Silver Merger Sub, Inc., a subsidiary of MidAmerican, and following the completion of the merger (the NVE Merger) NVE became an indirect wholly owned subsidiary of MidAmerican.

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