Companhia Paranaense de Energia – Copel (NYSE:ELPC) vs. AES (NYSE:AES) Head to Head Comparison

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

Dividends

AES pays an annual dividend of $0.70 per share and has a dividend yield of 4.9%. Companhia Paranaense de Energia – Copel pays an annual dividend of $0.69 per share and has a dividend yield of 6.0%. AES pays out 43.8% of its earnings in the form of a dividend. Companhia Paranaense de Energia – Copel pays out 125.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AES has raised its dividend for 12 consecutive years.

Valuation & Earnings

This table compares AES and Companhia Paranaense de Energia – Copel”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AES	$12.28 billion	0.83	$1.68 billion	$1.60	8.92
Companhia Paranaense de Energia – Copel	$22.41 billion	0.38	$409.35 million	$0.55	20.87

AES has higher earnings, but lower revenue than Companhia Paranaense de Energia – Copel. AES 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.

Analyst Recommendations

This is a summary of current ratings and price targets for AES and Companhia Paranaense de Energia – Copel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AES	0	5	5	0	2.50
Companhia Paranaense de Energia – Copel	0	2	1	1	2.75

AES presently has a consensus target price of $25.00, indicating a potential upside of 75.19%. Companhia Paranaense de Energia – Copel has a consensus target price of $10.40, indicating a potential downside of 9.41%. Given AES’s higher probable upside, analysts plainly believe AES is more favorable than Companhia Paranaense de Energia – Copel.

Institutional and Insider Ownership

93.1% of AES shares are held by institutional investors. 0.6% of AES shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

AES has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia – Copel has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500.

Profitability

This table compares AES and Companhia Paranaense de Energia – Copel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AES	9.47%	18.83%	3.04%
Companhia Paranaense de Energia – Copel	N/A	N/A	N/A

Summary

AES beats Companhia Paranaense de Energia – Copel on 13 of the 18 factors compared between the two stocks.

About AES

The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.

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.