PNM Resources (NYSE:PNM – Get Rating) and Companhia Paranaense de Energia – COPEL (OTCMKTS:ELPVY – Get Rating) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Insider and Institutional Ownership

91.2% of PNM Resources shares are held by institutional investors. 1.4% of PNM Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares PNM Resources and Companhia Paranaense de Energia – COPEL's top-line revenue, earnings per share (EPS) and valuation.

Profitability

This table compares PNM Resources and Companhia Paranaense de Energia – COPEL's net margins, return on equity and return on assets.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for PNM Resources and Companhia Paranaense de Energia – COPEL, as reported by MarketBeat.com.

PNM Resources presently has a consensus price target of $48.67, suggesting a potential upside of 1.79%. Given PNM Resources' higher possible upside, equities research analysts clearly believe PNM Resources is more favorable than Companhia Paranaense de Energia – COPEL.

Dividends

PNM Resources pays an annual dividend of $1.39 per share and has a dividend yield of 2.9%. Companhia Paranaense de Energia – COPEL pays an annual dividend of $0.01 per share and has a dividend yield of 0.8%. PNM Resources pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PNM Resources has increased its dividend for 10 consecutive years. PNM Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

PNM Resources has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia – COPEL has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Summary

PNM Resources beats Companhia Paranaense de Energia – COPEL on 8 of the 14 factors compared between the two stocks.

About PNM Resources

(Get Rating)

PNM Resources, Inc., through its subsidiaries, provides electricity and electric services in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment engages in the generation, transmission, and distribution of electricity. The segment generates electricity using coal, natural gas and oil, nuclear fuel, solar, wind, and geothermal energy sources. As of December 31, 2021, this segment had owned or leased facilities with a total net generation capacity of 2,168 megawatts; and owned 3,426 miles of electric transmission lines, 5,751 miles of distribution overhead lines, 5,765 miles of underground distribution lines, and 250 substations. The segment also owns and leases communication, office and other equipment, office space, vehicles, and real estate. The TNMP segment provides regulated transmission and distribution services. As of December 31, 2021, the segment owned 983 miles of overhead electric transmission lines, 7,297 miles of overhead distribution lines, 1,408 miles of underground distribution lines, and 113 substations. The segment also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves approximately 806,000 residential, commercial, and industrial customers and end-users of electricity in New Mexico and Texas. PNM Resources, Inc. was incorporated in 1882 and is headquartered in Albuquerque, New Mexico.

About Companhia Paranaense de Energia – COPEL

(Get Rating)

Companhia Paranaense de Energia – COPEL engages in the generation, transmission, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers primarily in the State of Paraná, Brazil. As of December 31, 2019, the company operated 19 hydroelectric plants, 25 wind plants, and one thermoelectric plant with a total installed capacity of 5,742.0 megawatts; and owned and operated 3,389 kilometers of transmission lines and 199,952.6 kilometers of distribution lines. It holds concessions to distribute electricity in 399 municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. The company also provides telecommunication services to corporate clients, including supermarkets, universities, banks, internet service providers, and television networks, as well as to retail clients; and broadband internet access to public elementary and middle schools. In addition, it supplies piped gas to 47,238 customers, including thermoelectric plants, cogeneration plants, gas stations, other businesses, and residences through a gas distribution network covering 833 kilometers in the State of Paraná. Companhia Paranaense de Energia Â- COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.

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