Otter Tail (NASDAQ: OTTR) and Companhia Paranaense de Energia ADR Class B (NYSE:ELP) are both small-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Risk and Volatility
Otter Tail has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia ADR Class B has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Otter Tail and Companhia Paranaense de Energia ADR Class B, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Companhia Paranaense de Energia ADR Class B||0||1||0||0||2.00|
Otter Tail presently has a consensus price target of $44.00, suggesting a potential downside of 8.43%. Given Otter Tail’s higher probable upside, equities analysts plainly believe Otter Tail is more favorable than Companhia Paranaense de Energia ADR Class B.
Otter Tail pays an annual dividend of $1.34 per share and has a dividend yield of 2.8%. Companhia Paranaense de Energia ADR Class B pays an annual dividend of $0.05 per share and has a dividend yield of 0.9%. Otter Tail pays out 72.0% of its earnings in the form of a dividend.
This table compares Otter Tail and Companhia Paranaense de Energia ADR Class B’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Companhia Paranaense de Energia ADR Class B||6.81%||6.09%||2.88%|
Institutional and Insider Ownership
42.8% of Otter Tail shares are owned by institutional investors. Comparatively, 1.5% of Companhia Paranaense de Energia ADR Class B shares are owned by institutional investors. 1.7% of Otter Tail shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Otter Tail and Companhia Paranaense de Energia ADR Class B’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Otter Tail||$849.35 million||2.24||$72.43 million||$1.86||25.83|
|Companhia Paranaense de Energia ADR Class B||$4.40 billion||0.34||$323.73 million||N/A||N/A|
Companhia Paranaense de Energia ADR Class B has higher revenue and earnings than Otter Tail.
Otter Tail beats Companhia Paranaense de Energia ADR Class B on 9 of the 14 factors compared between the two stocks.
About Otter Tail
Otter Tail Corporation, together with its subsidiaries, engages in electric, manufacturing, and plastics businesses in the United States. The company's Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator, Inc. markets. This segment generates electricity through coal, wind and hydro, and natural gas and oil sources. It serves approximately 130,000 residential, commercial, industrial, and other customers. Otter Tail Corporation's Manufacturing segment stamps, fabricates, welds, paints, and laser cuts metal components for use in the recreational vehicle, agricultural, oil and gas, lawn and garden, industrial equipment, health and fitness, and enclosure industries; manufactures and fabricates parts for off-road equipment, mining machinery, oil fields and offshore oil rigs, wind industry components, broadcast antennae, and farm equipment; and provides laser cutting services and stamping to weldments and assemblies for metal fabrication buyers and original equipment manufacturers. It also manufactures and sells thermoformed products for the horticulture industry; and clamshell packing, blister packs, returnable pallets, and handling trays for shipping and storing odd-shaped or difficult-to-handle parts for customers in the medical and life sciences, industrial, recreation, and electronics industries. The company's Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage system, and other uses. This segment markets its products to wholesalers and distributors through independent sales representatives, company salespersons, and customer service representatives. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001. Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota.
About Companhia Paranaense de Energia ADR Class B
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, 2017, the company operated 17 hydroelectric plants, 12 wind plants, and 1 thermoelectric plant with a total installed capacity of 5,024.0 megawatts; and owned and operated 2,698.3 kilometers of transmission lines and 196,951.2 kilometers of distribution lines. It holds concessions to distribute electricity in 394 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 39,377 customers, including thermoelectric plants, cogeneration plants, gas stations, other businesses, and residences through a gas distribution network covering 812 kilometers in the State of Paraná. Companhia Paranaense de Energia – COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.
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