Critical Survey: Companhia Paranaense de Energia – COPEL (OTCMKTS:ELPVY) & SSE (OTCMKTS:SSEZY)

Companhia Paranaense de Energia – COPEL (OTCMKTS:ELPVY) and SSE (OTCMKTS:SSEZY) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Dividends

Companhia Paranaense de Energia – COPEL pays an annual dividend of $0.01 per share and has a dividend yield of 0.8%. SSE pays an annual dividend of $1.19 per share and has a dividend yield of 3.7%.

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, SSE has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Companhia Paranaense de Energia – COPEL and SSE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia Paranaense de Energia – COPEL	0	0	0	0	0.00
SSE	1	3	3	0	2.29

Earnings and Valuation

This table compares Companhia Paranaense de Energia – COPEL and SSE”s top-line 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
SSE	$13.65 billion	2.87	$1.72 billion	N/A	N/A

SSE has higher revenue and earnings than Companhia Paranaense de Energia – COPEL.

Profitability

This table compares Companhia Paranaense de Energia – COPEL and SSE’s 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%
SSE	N/A	N/A	N/A

Insider and Institutional Ownership

0.2% of SSE shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

SSE beats Companhia Paranaense de Energia – COPEL on 8 of the 11 factors compared between the two stocks.

About Companhia Paranaense de Energia – COPEL

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 SSE

SSE plc engages in the generation, transmission, distribution, and supply of electricity. It generates electricity from water, gas, coal, oil, and multi fuel. The company distributes electricity to approximately 3.8 million homes and businesses across the north of the central belt of Scotland and central southern England; and owns, operates, and develops high voltage electricity transmission system in the north of Scotland and remote islands. It also produces, stores, distributes, and supplies gas. In addition, it engages in the electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provides maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.