Contrasting Companhia Paranaense de Energia – Copel (NYSE:ELPC) and TXNM Energy (NYSE:TXNM)

Companhia Paranaense de Energia – Copel (NYSE:ELPC) and TXNM Energy (NYSE:TXNM) are both mid-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Dividends

Companhia Paranaense de Energia – Copel pays an annual dividend of $0.60 per share and has a dividend yield of 5.7%. TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. Companhia Paranaense de Energia – Copel pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TXNM Energy pays out 93.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Companhia Paranaense de Energia – Copel is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Companhia Paranaense de Energia – Copel and TXNM Energy’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
TXNM Energy	9.04%	8.11%	2.34%

Earnings and Valuation

This table compares Companhia Paranaense de Energia – Copel and TXNM Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Companhia Paranaense de Energia – Copel	$27.99 billion	0.28	$520.99 million	$0.70	15.04
TXNM Energy	$2.17 billion	2.74	$151.89 million	$1.81	31.76

Companhia Paranaense de Energia – Copel has higher revenue and earnings than TXNM Energy. Companhia Paranaense de Energia – Copel is trading at a lower price-to-earnings ratio than TXNM Energy, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

91.7% of TXNM Energy shares are held by institutional investors. 1.1% of TXNM Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Companhia Paranaense de Energia – Copel has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Companhia Paranaense de Energia – Copel and TXNM Energy, 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
TXNM Energy	0	3	0	0	2.00

Companhia Paranaense de Energia – Copel presently has a consensus price target of $10.40, indicating a potential downside of 1.20%. TXNM Energy has a consensus price target of $61.25, indicating a potential upside of 6.55%. Given TXNM Energy’s higher probable upside, analysts plainly believe TXNM Energy is more favorable than Companhia Paranaense de Energia – Copel.

Summary

TXNM Energy beats Companhia Paranaense de Energia – Copel on 10 of the 17 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 TXNM Energy

TXNM Energy, 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 owns and leases communications, office and other equipment, office space, vehicles, and real estate. It generates electricity using coal, natural gas and oil, and nuclear fuel and waste, as well as solar, wind, geothermal, and battery storage energy sources. The TNMP segment provides regulated transmission and distribution services. The segment also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves residential, commercial, and industrial customers and end-users of electricity in New Mexico and Texas. The company was formerly known as PNM Resources, Inc and changed its name to TXNM Energy, Inc. in August 2024. TXNM Energy, Inc. was founded in 1882 and is based in Albuquerque, New Mexico.