OGE Energy Corporation (NYSE: OGE) and Companhia Paranaense de Energia (COPEL) (NYSE:ELP) are both mid-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Risk & Volatility

OGE Energy Corporation has a beta of 0.93, meaning that its share price is 7% less 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.

Institutional & Insider Ownership

62.5% of OGE Energy Corporation shares are held by institutional investors. Comparatively, 2.1% of Companhia Paranaense de Energia (COPEL) shares are held by institutional investors. 0.5% of OGE Energy Corporation shares are held by 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 recommendations for OGE Energy Corporation and Companhia Paranaense de Energia (COPEL), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OGE Energy Corporation 1 5 1 0 2.00
Companhia Paranaense de Energia (COPEL) 0 1 1 0 2.50

OGE Energy Corporation presently has a consensus target price of $36.67, indicating a potential upside of 2.91%. Given OGE Energy Corporation’s higher probable upside, equities research analysts clearly believe OGE Energy Corporation is more favorable than Companhia Paranaense de Energia (COPEL).

Profitability

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

Net Margins Return on Equity Return on Assets
OGE Energy Corporation 16.69% 11.04% 3.76%
Companhia Paranaense de Energia (COPEL) 3.15% 2.64% 1.31%

Dividends

OGE Energy Corporation pays an annual dividend of $1.33 per share and has a dividend yield of 3.7%. Companhia Paranaense de Energia (COPEL) pays an annual dividend of $0.53 per share and has a dividend yield of 7.1%. OGE Energy Corporation pays out 69.6% of its earnings in the form of 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. Companhia Paranaense de Energia (COPEL) has increased its dividend for 10 consecutive years. Companhia Paranaense de Energia (COPEL) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares OGE Energy Corporation and Companhia Paranaense de Energia (COPEL)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
OGE Energy Corporation $2.26 billion 3.15 $338.20 million $1.91 18.65
Companhia Paranaense de Energia (COPEL) $3.78 billion 0.54 $274.84 million $0.45 16.49

OGE Energy Corporation 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 OGE Energy Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

OGE Energy Corporation beats Companhia Paranaense de Energia (COPEL) on 11 of the 16 factors compared between the two stocks.

About OGE Energy Corporation

OGE Energy Corp. (OGE Energy) is an energy and energy services provider offering physical delivery and related services for both electricity and natural gas primarily in the south central United States. The Company operates through two segments: electric utility and natural gas midstream operations. The electric utility segment generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. Its operations are conducted through Oklahoma Gas and Electric Company (OG&E). OG&E is an electric utility in Oklahoma and its franchised service territory includes Fort Smith, Arkansas and the surrounding communities. The natural gas midstream operations segment represents the Company’s investment in Enable Midstream Partners, LP (Enable) through subsidiaries, and ultimately OGE Enogex Holdings LLC (OGE Holdings). Enable’s assets and operations are organized into two segments: gathering and processing, and transportation and storage.

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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