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

Dividends

Public Service Enterprise Group pays an annual dividend of $1.72 per share and has a dividend yield of 3.5%. Companhia Paranaense de Energia (COPEL) pays an annual dividend of $0.53 per share and has a dividend yield of 6.4%. Public Service Enterprise Group pays out 193.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Public Service Enterprise Group has increased its dividend for 5 consecutive years. Companhia Paranaense de Energia (COPEL) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Public Service Enterprise Group 4.88% 11.46% 3.77%
Companhia Paranaense de Energia (COPEL) 3.15% 2.64% 1.31%

Institutional and Insider Ownership

65.9% of Public Service Enterprise Group shares are owned by institutional investors. Comparatively, 2.1% of Companhia Paranaense de Energia (COPEL) shares are owned by institutional investors. 0.6% of Public Service Enterprise Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Public Service Enterprise Group has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia (COPEL) has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Valuation and Earnings

This table compares Public Service Enterprise Group and Companhia Paranaense de Energia (COPEL)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Public Service Enterprise Group $9.27 billion 2.67 $3.60 billion $0.89 55.03
Companhia Paranaense de Energia (COPEL) $3.98 billion 0.57 $670.23 million $0.45 18.49

Public Service Enterprise Group 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 Public Service Enterprise Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Public Service Enterprise Group and Companhia Paranaense de Energia (COPEL), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Public Service Enterprise Group 0 5 7 0 2.58
Companhia Paranaense de Energia (COPEL) 0 1 1 0 2.50

Public Service Enterprise Group currently has a consensus price target of $49.72, suggesting a potential upside of 1.52%. Given Public Service Enterprise Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Public Service Enterprise Group is more favorable than Companhia Paranaense de Energia (COPEL).

Summary

Public Service Enterprise Group beats Companhia Paranaense de Energia (COPEL) on 14 of the 17 factors compared between the two stocks.

Public Service Enterprise Group Company Profile

Public Service Enterprise Group Incorporated (PSEG) is a holding company. The Company is an energy company with operations located primarily in the Northeastern and Mid-Atlantic United States. The Company’s segments include Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (Power) and Other. PSEG is engaged in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is also the provider of last resort for gas and electric commodity service for end users in its service territory. Power is a multi-regional energy supply company that integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses through energy sales in energy markets and fuel supply functions primarily in the Northeast and Mid-Atlantic United States through its principal subsidiaries. In addition, Power owns and operates solar generation in various states.

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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