Dynegy (NYSE: DYN) and Companhia Paranaense de Energia (COPEL) (NYSE:ELP) are both small-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
This table compares Dynegy and Companhia Paranaense de Energia (COPEL)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Companhia Paranaense de Energia (COPEL)||3.15%||2.64%||1.31%|
Valuation and Earnings
This table compares Dynegy and Companhia Paranaense de Energia (COPEL)’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Dynegy||$4.32 billion||0.38||-$1.24 billion||($0.23)||-53.61|
|Companhia Paranaense de Energia (COPEL)||$3.78 billion||0.52||$274.84 million||$0.45||16.00|
Companhia Paranaense de Energia (COPEL) has higher revenue, but lower earnings than Dynegy. Dynegy is trading at a lower price-to-earnings ratio than Companhia Paranaense de Energia (COPEL), indicating that it is currently the more affordable of the two stocks.
Companhia Paranaense de Energia (COPEL) pays an annual dividend of $0.53 per share and has a dividend yield of 7.4%. Dynegy does not pay a dividend. Companhia Paranaense de Energia (COPEL) pays out 117.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Dynegy has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia (COPEL) has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.
Institutional & Insider Ownership
2.3% of Companhia Paranaense de Energia (COPEL) shares are held by institutional investors. 1.8% of Dynegy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings for Dynegy and Companhia Paranaense de Energia (COPEL), as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Companhia Paranaense de Energia (COPEL)||0||0||1||0||3.00|
Dynegy presently has a consensus target price of $13.01, suggesting a potential upside of 5.54%. Given Dynegy’s higher possible upside, analysts clearly believe Dynegy is more favorable than Companhia Paranaense de Energia (COPEL).
Companhia Paranaense de Energia (COPEL) beats Dynegy on 9 of the 15 factors compared between the two stocks.
Dynegy Company Profile
Dynegy Inc. (Dynegy) is a holding company and conducts the business operations through its subsidiaries. The primary business of Dynegy is the production and sale of electric energy, capacity and ancillary services from the fleet of 18 operating power plants in six states totaling approximately 12,300 megawatt (MW) of generating capacity. Dynegy sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities. Its customers include Regional Transmission Organization (RTOs) and Independent System Operators (ISOs), integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial participants, such as banks and hedge funds, other power generators and commercial end-users. It has three segments: Midwest segment (GEN-MW), West segment (GEN-WE) and Northeast segment (GEN-NE). Its wholly owned subsidiary is Dynegy Holdings Inc. (DHI).
Companhia Paranaense de Energia (COPEL) 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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