Analyzing Dynegy (DYN) and Companhia Paranaense de Energia (COPEL) (ELP)

Dynegy (NYSE: DYN) and Companhia Paranaense de Energia (COPEL) (NYSE:ELP) are both small-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Valuation and Earnings

This table compares Dynegy and Companhia Paranaense de Energia (COPEL)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Dynegy $4.32 billion 0.38 -$1.24 billion ($0.52) -23.75
Companhia Paranaense de Energia (COPEL) $3.78 billion 0.51 $274.84 million $0.43 16.42

Companhia Paranaense de Energia (COPEL) has higher revenue, but lower earnings than Dynegy. Dynegy 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.

Dividends

Companhia Paranaense de Energia (COPEL) pays an annual dividend of $0.53 per share and has a dividend yield of 7.5%. Dynegy does not pay a dividend. Companhia Paranaense de Energia (COPEL) pays out 123.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

2.3% of Companhia Paranaense de Energia (COPEL) shares are owned by institutional investors. 1.8% of Dynegy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Dynegy and Companhia Paranaense de Energia (COPEL)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynegy -0.22% -17.98% -2.46%
Companhia Paranaense de Energia (COPEL) 3.15% 2.64% 1.31%

Volatility & Risk

Dynegy has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia (COPEL) has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Dynegy and Companhia Paranaense de Energia (COPEL), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynegy 0 4 5 0 2.56
Companhia Paranaense de Energia (COPEL) 0 0 1 0 3.00

Dynegy currently has a consensus price target of $13.01, suggesting a potential upside of 5.36%. Given Dynegy’s higher probable upside, analysts plainly believe Dynegy is more favorable than Companhia Paranaense de Energia (COPEL).

Summary

Companhia Paranaense de Energia (COPEL) beats Dynegy on 9 of the 15 factors compared between the two stocks.

Dynegy Company Profile

Dynegy Inc. (Dynegy) is a holding company and conducts the business operations through its subsidiaries. The primary business of Dynegy is the production and sale of electric energy, capacity and ancillary services from the fleet of 18 operating power plants in six states totaling approximately 12,300 megawatt (MW) of generating capacity. Dynegy sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities. Its customers include Regional Transmission Organization (RTOs) and Independent System Operators (ISOs), integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial participants, such as banks and hedge funds, other power generators and commercial end-users. It has three segments: Midwest segment (GEN-MW), West segment (GEN-WE) and Northeast segment (GEN-NE). Its wholly owned subsidiary is Dynegy Holdings Inc. (DHI).

Companhia Paranaense de Energia (COPEL) Company Profile

Companhia Paranaense de Energia is engaged in the generation, transmission, distribution and sale of electricity in the Brazilian State of Parana. The Company also provides telecommunications and other services. Its segments are Power generation and transmission (GET), Power distribution and sales (DIS), Telecommunications (TEL), GAS and Holding Company (HOL). The GET segment includes the generation of electric energy from hydraulic, wind and thermal projects; the transport and transformation of the power generated by the Company, and the construction, operation and maintenance of all power transmission substations and lines. The DIS segment includes the distribution and sale of electric energy, and the operation and maintenance of the distribution infrastructure. The TEL segment includes telecommunications and general communications services. The GAS segment includes the public service of piped natural gas distribution. The HOL segment includes participation in other companies.

Receive News & Ratings for Dynegy Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dynegy Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply