Analyzing Companhia Paranaense de Energia – Copel (NYSE:ELPC) and National Grid Transco (NYSE:NGG)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Companhia Paranaense de Energia – Copel	N/A	N/A	N/A
National Grid Transco	N/A	N/A	N/A

Valuation and Earnings

This table compares Companhia Paranaense de Energia – Copel and National Grid Transco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Companhia Paranaense de Energia – Copel	$4.68 billion	1.88	$424.24 million	$0.57	20.72
National Grid Transco	$23.71 billion	3.67	$4.34 billion	N/A	N/A

National Grid Transco has higher revenue and earnings than Companhia Paranaense de Energia – Copel.

Analyst Ratings

This is a breakdown of current ratings for Companhia Paranaense de Energia – Copel and National Grid Transco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia Paranaense de Energia – Copel	0	2	1	1	2.75
National Grid Transco	2	7	1	0	1.90

Companhia Paranaense de Energia – Copel presently has a consensus price target of $10.40, suggesting a potential downside of 11.94%. National Grid Transco has a consensus price target of $85.50, suggesting a potential upside of 2.08%. Given National Grid Transco’s higher probable upside, analysts plainly believe National Grid Transco is more favorable than Companhia Paranaense de Energia – Copel.

Insider and Institutional Ownership

4.7% of National Grid Transco shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Companhia Paranaense de Energia – Copel has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500. Comparatively, National Grid Transco has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Dividends

Companhia Paranaense de Energia – Copel pays an annual dividend of $0.58 per share and has a dividend yield of 4.9%. National Grid Transco pays an annual dividend of $4.31 per share and has a dividend yield of 5.1%. 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.

Summary

National Grid Transco beats Companhia Paranaense de Energia – Copel on 8 of the 10 factors compared between the two stocks.

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.

About National Grid Transco

National Grid plc transmits and distributes electricity and gas. It operates through UK Electricity Transmission, UK Electricity Distribution, UK Electricity System Operator, New England, New York, National Grid Ventures, and Other segments. The UK Electricity Transmission segment provides electricity transmission and construction work services in England and Wales. The UK Electricity Distribution segment offers electricity distribution services in Midlands, and South West of England and South Wales. The UK Electricity System Operator segment provides balancing services for supply and demand of electricity on Great Britain’s electricity transmission system; and acts as an agent on behalf of transmission operators. The New England segment offers electricity and gas distribution, and electricity transmission services in New England. The New York segment provides electricity and gas distribution, and electricity transmission services in New York. The National Grid Ventures segment provides transmission services through electricity interconnectors and LNG importation at the Isle of Grain, as well as sale of renewables projects. The Other segment engages in the leasing and sale of commercial property, as well as insurance activities in the United Kingdom. The company was founded in 1990 and is headquartered in London, the United Kingdom.