Iberdrola (OTCMKTS:IBDRY) and Companhia Paranaense de Energia – Copel (NYSE:ELPC) Financial Analysis

Iberdrola (OTCMKTS:IBDRY) and Companhia Paranaense de Energia – Copel (NYSE:ELPC) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Institutional & Insider Ownership

0.0% of Iberdrola shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Iberdrola and Companhia Paranaense de Energia – Copel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iberdrola	13.40%	9.88%	3.81%
Companhia Paranaense de Energia – Copel	N/A	N/A	N/A

Dividends

Iberdrola pays an annual dividend of $3.03 per share and has a dividend yield of 3.1%. Companhia Paranaense de Energia – Copel pays an annual dividend of $0.58 per share and has a dividend yield of 4.9%. Iberdrola pays out 74.6% of its earnings in the form of a dividend. Companhia Paranaense de Energia – Copel pays out 101.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings and price targets for Iberdrola and Companhia Paranaense de Energia – Copel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iberdrola	1	4	3	0	2.25
Companhia Paranaense de Energia – Copel	0	2	1	1	2.75

Companhia Paranaense de Energia – Copel has a consensus target price of $10.40, suggesting a potential downside of 11.75%. Given Companhia Paranaense de Energia – Copel’s stronger consensus rating and higher possible upside, analysts clearly believe Companhia Paranaense de Energia – Copel is more favorable than Iberdrola.

Volatility & Risk

Iberdrola has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia – Copel has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.

Earnings & Valuation

This table compares Iberdrola and Companhia Paranaense de Energia – Copel”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iberdrola	$51.52 billion	3.24	$7.11 billion	$4.06	24.33
Companhia Paranaense de Energia – Copel	$4.68 billion	1.88	$424.24 million	$0.57	20.68

Iberdrola 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 Iberdrola, indicating that it is currently the more affordable of the two stocks.

Summary

Iberdrola beats Companhia Paranaense de Energia – Copel on 12 of the 16 factors compared between the two stocks.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

About Companhia Paranaense de Energia – Copel

Companhia Paranaense de Energia – COPEL engages in the generation, transformation, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers in Brazil. The company operates through Power Generation and Transmission, Power Distribution, GAS, Power Sale, and Holding and Services segments. It is also involved in the piped natural gas distribution. The company operates hydroelectric, wind, and thermoelectric plants; and owns and operates transmission and distribution lines. It holds concessions to distribute electricity in municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. Companhia Paranaense de Energia COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.