Reviewing Companhia Paranaense de Energia – Copel (NYSE:ELPC) and Avista (NYSE:AVA)

Companhia Paranaense de Energia – Copel (NYSE:ELPC) and Avista (NYSE:AVA) 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, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Companhia Paranaense de Energia – Copel and Avista’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
Avista	10.75%	7.65%	2.50%

Dividends

Companhia Paranaense de Energia – Copel pays an annual dividend of $0.58 per share and has a dividend yield of 5.1%. Avista pays an annual dividend of $1.97 per share and has a dividend yield of 5.0%. 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. Avista pays out 78.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avista has increased its dividend for 23 consecutive years.

Insider & Institutional Ownership

85.2% of Avista shares are held by institutional investors. 0.8% of Avista shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Companhia Paranaense de Energia – Copel has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500. Comparatively, Avista has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Companhia Paranaense de Energia – Copel	$4.68 billion	1.80	$424.24 million	$0.57	19.84
Avista	$1.96 billion	1.67	$193.00 million	$2.51	15.85

Companhia Paranaense de Energia – Copel has higher revenue and earnings than Avista. Avista 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 Ratings

This is a summary of recent recommendations for Companhia Paranaense de Energia – Copel and Avista, 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
Avista	0	6	1	0	2.14

Companhia Paranaense de Energia – Copel currently has a consensus target price of $10.40, suggesting a potential downside of 8.02%. Avista has a consensus target price of $39.75, suggesting a potential downside of 0.07%. Given Avista’s higher probable upside, analysts clearly believe Avista is more favorable than Companhia Paranaense de Energia – Copel.

Summary

Avista 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 Avista

Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the supply of electricity to customers in Montana; and wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services in Juneau, Alaska. The company generates electricity through hydroelectric, thermal, wind, and solar generation facilities. As of December 31, 2023, it supplied retail electric services to approximately 416,000 customers; and retail natural gas services to approximately 381,000 customers. The company also operates five hydroelectric generation facilities with capacity of 102.7 MW; and four diesel generating facilities with a capacity of 107.5 MW. It also engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.