Companhia Paranaense de Energia – COPEL (OTCMKTS:ELPVY – Get Rating) and PNM Resources (NYSE:PNM – Get Rating) are both mid-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.
Dividends
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 an annual dividend of $1.39 per share and has a dividend yield of 3.0%. 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 raised 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.
Get Companhia Paranaense de Energia - COPEL alerts:Volatility and Risk
Companhia Paranaense de Energia – COPEL has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, PNM Resources has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Companhia Paranaense de Energia – COPEL and PNM Resources, as provided by MarketBeat.com.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Companhia Paranaense de Energia – COPEL | 0 | 0 | 0 | 0 | N/A |
| PNM Resources | 1 | 0 | 2 | 0 | 2.33 |
PNM Resources has a consensus target price of $48.67, suggesting a potential upside of 4.50%. Given PNM Resources' higher possible upside, analysts clearly believe PNM Resources is more favorable than Companhia Paranaense de Energia – COPEL.
Profitability
This table compares Companhia Paranaense de Energia – COPEL and PNM Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Companhia Paranaense de Energia – COPEL | 18.43% | 16.92% | 7.73% |
| PNM Resources | 8.29% | 10.41% | 2.65% |
Institutional & Insider Ownership
91.2% of PNM Resources shares are held by institutional investors. 1.4% of PNM Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Companhia Paranaense de Energia – COPEL and PNM Resources' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Companhia Paranaense de Energia – COPEL | $3.95 billion | 0.90 | $504.25 million | N/A | N/A |
| PNM Resources | $1.78 billion | 2.25 | $196.36 million | $1.82 | 25.59 |
Companhia Paranaense de Energia – COPEL has higher revenue and earnings than PNM Resources.
Summary
PNM Resources beats Companhia Paranaense de Energia – COPEL on 8 of the 14 factors compared between the two stocks.
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.
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.
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