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

Valuation and Earnings

This table compares Dominion Energy and Companhia Paranaense de Energia’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dominion Energy $11.73 billion 4.21 $2.12 billion $3.39 22.66
Companhia Paranaense de Energia $3.78 billion 0.55 $274.84 million $0.96 7.88

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

Profitability

This table compares Dominion Energy and Companhia Paranaense de Energia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dominion Energy 17.21% 13.32% 3.16%
Companhia Paranaense de Energia 6.46% 5.70% 2.78%

Dividends

Dominion Energy pays an annual dividend of $3.08 per share and has a dividend yield of 4.0%. Companhia Paranaense de Energia pays an annual dividend of $0.52 per share and has a dividend yield of 6.9%. Dominion Energy pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Companhia Paranaense de Energia pays out 54.2% of its earnings in the form of a dividend. Dominion Energy has raised its dividend for 8 consecutive years. Companhia Paranaense de Energia is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Dominion Energy and Companhia Paranaense de Energia, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dominion Energy 0 10 4 0 2.29
Companhia Paranaense de Energia 0 0 1 0 3.00

Dominion Energy currently has a consensus price target of $81.78, suggesting a potential upside of 6.44%. Given Dominion Energy’s higher probable upside, equities research analysts clearly believe Dominion Energy is more favorable than Companhia Paranaense de Energia.

Volatility and Risk

Dominion Energy has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

64.6% of Dominion Energy shares are owned by institutional investors. Comparatively, 2.0% of Companhia Paranaense de Energia shares are owned by institutional investors. 0.4% of Dominion Energy shares are owned by company insiders. 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.

Summary

Dominion Energy beats Companhia Paranaense de Energia on 13 of the 17 factors compared between the two stocks.

Dominion Energy Company Profile

Dominion Energy, Inc., formerly Dominion Resources, Inc., is a producer and transporter of energy. Dominion is focused on its investment in regulated electric generation, transmission and distribution and regulated natural gas transmission and distribution infrastructure. It operates through three segments: Dominion Virginia Power operating segment (DVP), Dominion Generation, Dominion Energy, and Corporate and Other. The DVP segment includes regulated electric distribution and regulated electric transmission. The Dominion Generation segment includes regulated electric fleet and merchant electric fleet. The Dominion Energy segment includes gas transmission and storage, gas gathering and processing, liquefied natural gas import and storage, and nonregulated retail energy marketing. As of December 31, 2016, Dominion served utility and retail energy customers, and operated an underground natural gas storage system with approximately one trillion cubic feet of storage capacity.

Companhia Paranaense de Energia 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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