Reviewing Pinnacle West Capital (NYSE:PNW) & Companhia Paranaense de Energia – COPEL (OTCMKTS:ELPVY)

Companhia Paranaense de Energia – COPEL (OTCMKTS:ELPVYGet Rating) and Pinnacle West Capital (NYSE:PNWGet Rating) are both mid-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Volatility & Risk

Companhia Paranaense de Energia – COPEL has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Profitability

This table compares Companhia Paranaense de Energia – COPEL and Pinnacle West Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Companhia Paranaense de Energia – COPEL 18.43% 16.92% 7.73%
Pinnacle West Capital 15.42% 9.96% 2.77%

Valuation & Earnings

This table compares Companhia Paranaense de Energia – COPEL and Pinnacle West Capital’s top-line 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 $3.95 billion 0.90 $504.25 million N/A N/A
Pinnacle West Capital $3.80 billion 2.19 $618.72 million $5.30 13.93

Pinnacle West Capital has lower revenue, but higher earnings than Companhia Paranaense de Energia – COPEL.

Insider & Institutional Ownership

80.9% of Pinnacle West Capital shares are held by institutional investors. 0.3% of Pinnacle West Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Companhia Paranaense de Energia – COPEL pays an annual dividend of $0.01 per share and has a dividend yield of 0.8%. Pinnacle West Capital pays an annual dividend of $3.40 per share and has a dividend yield of 4.6%. Pinnacle West Capital pays out 64.2% of its earnings in the form of a dividend. Pinnacle West Capital has raised its dividend for 11 consecutive years. Pinnacle West Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Companhia Paranaense de Energia – COPEL and Pinnacle West Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Companhia Paranaense de Energia – COPEL 0 0 0 0 N/A
Pinnacle West Capital 7 4 1 0 1.50

Pinnacle West Capital has a consensus price target of $71.62, suggesting a potential downside of 2.97%. Given Pinnacle West Capital’s higher possible upside, analysts plainly believe Pinnacle West Capital is more favorable than Companhia Paranaense de Energia – COPEL.

Summary

Pinnacle West Capital beats Companhia Paranaense de Energia – COPEL on 9 of the 15 factors compared between the two stocks.

About Companhia Paranaense de Energia – COPEL

(Get Rating)

Companhia Paranaense de Energia – COPEL engages in the generation, transmission, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers primarily in the State of Paraná, Brazil. As of December 31, 2019, the company operated 19 hydroelectric plants, 25 wind plants, and one thermoelectric plant with a total installed capacity of 5,742.0 megawatts; and owned and operated 3,389 kilometers of transmission lines and 199,952.6 kilometers of distribution lines. It holds concessions to distribute electricity in 399 municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. The company also provides telecommunication services to corporate clients, including supermarkets, universities, banks, internet service providers, and television networks, as well as to retail clients; and broadband internet access to public elementary and middle schools. In addition, it supplies piped gas to 47,238 customers, including thermoelectric plants, cogeneration plants, gas stations, other businesses, and residences through a gas distribution network covering 833 kilometers in the State of Paraná. Companhia Paranaense de Energia Â- COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.

About Pinnacle West Capital

(Get Rating)

Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include approximately 5,814 pole miles of overhead lines and approximately 74 miles of underground lines; and distribution facilities comprise approximately 11,258 miles of overhead lines and approximately 22,821 miles of underground primary cable, as well as owns and maintains 475 transmission and distribution substations. The company also owns or leases approximately 6,323 megawatts of regulated generation capacity. It serves approximately 1.3 million customers. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.

Want More Great Investing Ideas?

Receive News & Ratings for Companhia Paranaense de Energia - COPEL Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Companhia Paranaense de Energia - COPEL and related companies with MarketBeat.com's FREE daily email newsletter.