Head-To-Head Survey: Companhia Paranaense de Energia (COPEL) (ELP) & Entergy (ETR)

Companhia Paranaense de Energia (COPEL) (NYSE: ELP) and Entergy (NYSE:ETR) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Valuation & Earnings

This table compares Companhia Paranaense de Energia (COPEL) and Entergy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Companhia Paranaense de Energia (COPEL) $3.78 billion 0.50 $274.84 million $0.99 6.97
Entergy $10.85 billion 1.39 -$564.50 million ($4.94) -16.94

Companhia Paranaense de Energia (COPEL) has higher earnings, but lower revenue than Entergy. Entergy is trading at a lower price-to-earnings ratio than Companhia Paranaense de Energia (COPEL), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Companhia Paranaense de Energia (COPEL) and Entergy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Companhia Paranaense de Energia (COPEL) 0 0 1 0 3.00
Entergy 0 8 4 0 2.33

Entergy has a consensus price target of $82.42, suggesting a potential downside of 1.53%. Given Entergy’s higher probable upside, analysts plainly believe Entergy is more favorable than Companhia Paranaense de Energia (COPEL).

Dividends

Companhia Paranaense de Energia (COPEL) pays an annual dividend of $0.53 per share and has a dividend yield of 7.7%. Entergy pays an annual dividend of $3.56 per share and has a dividend yield of 4.3%. Companhia Paranaense de Energia (COPEL) pays out 53.5% of its earnings in the form of a dividend. Entergy pays out -72.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Entergy has raised its dividend for 2 consecutive years.

Volatility & Risk

Companhia Paranaense de Energia (COPEL) has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Entergy has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Institutional and Insider Ownership

2.0% of Companhia Paranaense de Energia (COPEL) shares are owned by institutional investors. Comparatively, 83.0% of Entergy shares are owned by institutional investors. 0.2% of Entergy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Companhia Paranaense de Energia (COPEL) and Entergy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Companhia Paranaense de Energia (COPEL) 6.46% 5.80% 2.86%
Entergy -7.82% 14.76% 2.67%

Summary

Entergy beats Companhia Paranaense de Energia (COPEL) on 10 of the 17 factors compared between the two stocks.

Companhia Paranaense de Energia (COPEL) Company Profile

Companhia Paranaense de Energia is engaged in the generation, transmission, distribution and sale of electricity in the Brazilian State of Parana. The Company also provides telecommunications and other services. Its segments are Power generation and transmission (GET), Power distribution and sales (DIS), Telecommunications (TEL), GAS and Holding Company (HOL). The GET segment includes the generation of electric energy from hydraulic, wind and thermal projects; the transport and transformation of the power generated by the Company, and the construction, operation and maintenance of all power transmission substations and lines. The DIS segment includes the distribution and sale of electric energy, and the operation and maintenance of the distribution infrastructure. The TEL segment includes telecommunications and general communications services. The GAS segment includes the public service of piped natural gas distribution. The HOL segment includes participation in other companies.

Entergy Company Profile

Entergy Corporation is a holding company. The Company is an integrated energy company engaged in electric power production and retail electric distribution operations. The Company operates through two business segments: Utility and Entergy Wholesale Commodities. The Utility segment includes the generation, transmission, distribution and sale of electric power to retail and wholesale customers in areas of Arkansas, Mississippi, Texas and Louisiana, including the City of New Orleans and operates a natural gas distribution business. The Entergy Wholesale Commodities segment includes the ownership, operation and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. As of December 31, 2016, the Company owned and operated power plants with over 30,000 megawatts of aggregate electric generating capacity, including approximately 10,000 megawatts of nuclear-fueled capacity.

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