Head to Head Review: Companhia Paranaense de Energia – Copel (NYSE:ELPC) and FirstEnergy (NYSE:FE)

Companhia Paranaense de Energia – Copel (NYSE:ELPC – Get Free Report) and FirstEnergy (NYSE:FE – Get Free Report) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Dividends

Companhia Paranaense de Energia – Copel pays an annual dividend of $0.60 per share and has a dividend yield of 4.7%. FirstEnergy pays an annual dividend of $1.86 per share and has a dividend yield of 4.3%. Companhia Paranaense de Energia – Copel pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FirstEnergy pays out 98.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FirstEnergy has raised its dividend for 3 consecutive years. Companhia Paranaense de Energia – Copel is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Companhia Paranaense de Energia – Copel has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500. Comparatively, FirstEnergy has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Insider and Institutional Ownership

89.4% of FirstEnergy shares are held by institutional investors. 0.1% of FirstEnergy shares are held by company insiders. 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Companhia Paranaense de Energia – Copel and FirstEnergy, as provided by MarketBeat.

Companhia Paranaense de Energia – Copel currently has a consensus target price of $10.40, suggesting a potential downside of 18.97%. FirstEnergy has a consensus target price of $52.58, suggesting a potential upside of 21.21%. Given FirstEnergy’s higher probable upside, analysts plainly believe FirstEnergy is more favorable than Companhia Paranaense de Energia – Copel.

Profitability

This table compares Companhia Paranaense de Energia – Copel and FirstEnergy’s net margins, return on equity and return on assets.

Valuation & Earnings

This table compares Companhia Paranaense de Energia – Copel and FirstEnergy”s gross revenue, earnings per share and valuation.

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

Summary

FirstEnergy beats Companhia Paranaense de Energia – Copel on 13 of the 18 factors compared between the two stocks.

About Companhia Paranaense de Energia – Copel

(Get Free Report)

Companhia Paranaense de Energia – COPEL engages in the generation, transformation, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers in Brazil. The company operates through Power Generation and Transmission, Power Distribution, GAS, Power Sale, and Holding and Services segments. It is also involved in the piped natural gas distribution. The company operates hydroelectric, wind, and thermoelectric plants; and owns and operates transmission and distribution lines. It holds concessions to distribute electricity in municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. Companhia Paranaense de Energia COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.

About FirstEnergy

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FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities. It operates 24,080 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 274,518 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.