Financial Analysis: Pampa Energia (PAM) versus Companhia Paranaense de Energia (COPEL) (ELP)
Pampa Energia (NYSE: PAM) and Companhia Paranaense de Energia (COPEL) (NYSE:ELP) are both mid-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
Pampa Energia has a beta of 1.19, meaning that its share 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 share price is 58% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Pampa Energia and Companhia Paranaense de Energia (COPEL), as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Companhia Paranaense de Energia (COPEL)||0||1||1||0||2.50|
Pampa Energia presently has a consensus target price of $72.00, suggesting a potential upside of 6.15%. Given Pampa Energia’s higher possible upside, research analysts clearly believe Pampa Energia is more favorable than Companhia Paranaense de Energia (COPEL).
Valuation and Earnings
This table compares Pampa Energia and Companhia Paranaense de Energia (COPEL)’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pampa Energia||$3.11 billion||1.60||$723.59 million||$1.44||47.10|
|Companhia Paranaense de Energia (COPEL)||$3.85 billion||0.55||$648.29 million||$0.45||17.09|
Pampa Energia has higher revenue, but lower earnings than Companhia Paranaense de Energia (COPEL). 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.
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|
|Companhia Paranaense de Energia (COPEL)||3.15%||2.64%||1.31%|
Companhia Paranaense de Energia (COPEL) pays an annual dividend of $0.53 per share and has a dividend yield of 6.9%. 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.
Institutional and Insider Ownership
44.1% of Pampa Energia shares are held by institutional investors. Comparatively, 2.1% of Companhia Paranaense de Energia (COPEL) shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Pampa Energia beats Companhia Paranaense de Energia (COPEL) on 10 of the 13 factors compared between the two stocks.
About Pampa Energia
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.
About Companhia Paranaense de Energia (COPEL)
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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