Comparing CPFL Energia (CPL) and Dominion Energy (D)
CPFL Energia (NYSE: CPL) and Dominion Energy (NYSE:D) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Dominion Energy pays an annual dividend of $3.34 per share and has a dividend yield of 4.6%. CPFL Energia does not pay a dividend. Dominion Energy pays out 98.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CPFL Energia has raised its dividend for 4 consecutive years and Dominion Energy has raised its dividend for 9 consecutive years.
This table compares CPFL Energia and Dominion Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CPFL Energia||$5.51 billion||1.36||$258.28 million||$0.53||27.70|
|Dominion Energy||$12.59 billion||3.75||$3.14 billion||$3.38||21.45|
Dominion Energy has higher revenue and earnings than CPFL Energia. Dominion Energy is trading at a lower price-to-earnings ratio than CPFL Energia, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CPFL Energia has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.
This table compares CPFL Energia and Dominion Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
1.4% of CPFL Energia shares are held by institutional investors. Comparatively, 65.3% of Dominion Energy shares are held by institutional investors. 0.4% of Dominion Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for CPFL Energia and Dominion Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dominion Energy has a consensus target price of $81.44, suggesting a potential upside of 12.34%. Given Dominion Energy’s higher possible upside, analysts clearly believe Dominion Energy is more favorable than CPFL Energia.
Dominion Energy beats CPFL Energia on 13 of the 16 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 Dominion Energy
Dominion Energy, Inc., formerly Dominion Resources, Inc., is a producer and transporter of energy. Dominion is focused on its investment in regulated electric generation, transmission and distribution and regulated natural gas transmission and distribution infrastructure. It operates through three segments: Dominion Virginia Power operating segment (DVP), Dominion Generation, Dominion Energy, and Corporate and Other. The DVP segment includes regulated electric distribution and regulated electric transmission. The Dominion Generation segment includes regulated electric fleet and merchant electric fleet. The Dominion Energy segment includes gas transmission and storage, gas gathering and processing, liquefied natural gas import and storage, and nonregulated retail energy marketing. As of December 31, 2016, Dominion served utility and retail energy customers, and operated an underground natural gas storage system with approximately one trillion cubic feet of storage capacity.
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