Financial Review: Companhia Paranaense de Energia – Copel (NYSE:ELPC) versus E.On (OTCMKTS:EONGY)

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

Earnings and Valuation

This table compares Companhia Paranaense de Energia – Copel and E.On”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	$4.68 billion	1.87	$424.24 million	$0.57	20.61
E.On	$89.03 billion	0.61	$1.96 billion	$1.53	13.48

E.On has higher revenue and earnings than Companhia Paranaense de Energia – Copel. E.On 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.

Profitability

This table compares Companhia Paranaense de Energia – Copel and E.On’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
E.On	4.58%	12.12%	2.80%

Dividends

Companhia Paranaense de Energia – Copel pays an annual dividend of $0.58 per share and has a dividend yield of 4.9%. E.On pays an annual dividend of $0.49 per share and has a dividend yield of 2.4%. Companhia Paranaense de Energia – Copel pays out 101.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. E.On pays out 32.0% of its earnings in the form of a dividend.

Volatility and Risk

Companhia Paranaense de Energia – Copel has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, E.On has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Companhia Paranaense de Energia – Copel and E.On, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia Paranaense de Energia – Copel	0	2	1	1	2.75
E.On	0	5	1	0	2.17

Companhia Paranaense de Energia – Copel currently has a consensus target price of $10.40, suggesting a potential downside of 11.47%. Given Companhia Paranaense de Energia – Copel’s stronger consensus rating and higher possible upside, research analysts clearly believe Companhia Paranaense de Energia – Copel is more favorable than E.On.

Summary

E.On beats Companhia Paranaense de Energia – Copel on 8 of the 14 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 E.On

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. Additionally, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.