Analyzing Companhia Paranaense de Energia – Copel (NYSE:ELPC) and MGE Energy (NASDAQ:MGEE)

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

Valuation & Earnings

This table compares Companhia Paranaense de Energia – Copel and MGE Energy”s top-line 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	$4.20 billion	2.62	$759.71 million	$0.71	14.51
MGE Energy	$725.52 million	4.21	$120.57 million	$3.69	22.67

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

Profitability

This table compares Companhia Paranaense de Energia – Copel and MGE 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
MGE Energy	18.24%	10.58%	4.65%

Dividends

Companhia Paranaense de Energia – Copel pays an annual dividend of $0.32 per share and has a dividend yield of 3.1%. MGE Energy pays an annual dividend of $1.90 per share and has a dividend yield of 2.3%. Companhia Paranaense de Energia – Copel pays out 45.1% of its earnings in the form of a dividend. MGE Energy pays out 51.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MGE Energy has raised its dividend for 49 consecutive years. Companhia Paranaense de Energia – Copel is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

52.6% of MGE Energy shares are held by institutional investors. 0.2% of MGE Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Companhia Paranaense de Energia – Copel has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, MGE Energy has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia Paranaense de Energia – Copel	0	1	0	0	2.00
MGE Energy	1	1	1	0	2.00

MGE Energy has a consensus target price of $79.00, suggesting a potential downside of 5.58%. Given MGE Energy’s higher possible upside, analysts clearly believe MGE Energy is more favorable than Companhia Paranaense de Energia – Copel.

Summary

MGE Energy beats Companhia Paranaense de Energia – Copel on 12 of the 16 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 MGE Energy

MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments. The company generates, purchases, and distributes electricity and natural gas in Wisconsin and Iowa; owns and leases electric generating capacity; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission power services. It generates electricity from coal-fired, gas-fired, and renewable energy sources. As of December 31, 2023, the company owned and operated 835 miles of overhead electric distribution lines; 1,330 miles of underground electric distribution cables; 49 substations with an installed capacity of 1.2 million kVA; and gas facilities, including 3,066 miles of distribution mains, as well as supplied electric service to approximately 163,000 customers. MGE Energy, Inc. founded in 2001 and is headquartered in Madison, Wisconsin.