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

Dividends

Companhia Paranaense de Energia (COPEL) pays an annual dividend of $0.53 per share and has a dividend yield of 7.0%. Pampa Energia does not pay a dividend. Companhia Paranaense de Energia (COPEL) pays out 117.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

Net Margins Return on Equity Return on Assets
Pampa Energia 3.37% 11.62% 2.17%
Companhia Paranaense de Energia (COPEL) 3.15% 2.64% 1.31%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Pampa Energia $2.13 billion 2.33 -$740,000.00 $1.44 46.88
Companhia Paranaense de Energia (COPEL) $3.78 billion 0.55 $274.84 million $0.45 16.91

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Pampa Energia and Companhia Paranaense de Energia (COPEL), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pampa Energia 0 1 1 0 2.50
Companhia Paranaense de Energia (COPEL) 0 1 1 0 2.50

Pampa Energia presently has a consensus price target of $72.00, suggesting a potential upside of 6.67%. Given Pampa Energia’s higher possible upside, analysts clearly believe Pampa Energia is more favorable than Companhia Paranaense de Energia (COPEL).

Institutional & Insider Ownership

44.1% of Pampa Energia shares are owned by institutional investors. Comparatively, 2.3% of Companhia Paranaense de Energia (COPEL) shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Pampa Energia has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia (COPEL) has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Summary

Pampa Energia beats Companhia Paranaense de Energia (COPEL) on 9 of the 13 factors compared between the two stocks.

Pampa Energia Company Profile

Pampa Energia S.A. is an integrated electricity company. The Company, through its subsidiaries, is engaged in the generation, transmission and distribution of electricity in Argentina. Its segments include generation, transmission, distribution, oil and gas, and holding and others. Its generation segment includes a direct and indirect equity interest in Central Piedra Buena S.A., Central Termica Guemes S.A., Central Termica Loma de la Lata S.A. and Pampa Comercializadora S.A, among others, and investments in companies in the electricity generation sector. Its transmission segment includes an indirect equity interest through Compania Inversora en Transmision Electrica Citelec S.A. Its distribution segment includes an indirect equity interest in Electricidad Argentina S.A. and Empresa Distribuidora y Comercializadora Norte S.A. Its Oil and gas segment includes a direct interest in Petrolera Pampa S.A. Its holding and others segment includes financial investment operations, among others.

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.

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