Head to Head Survey: Atlantica Yield (AY) vs. Companhia Paranaense de Energia (ELP)

Atlantica Yield (NASDAQ:AY) and Companhia Paranaense de Energia (NYSE:ELP) are both small-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Dividends

Atlantica Yield pays an annual dividend of $1.36 per share and has a dividend yield of 7.0%. Companhia Paranaense de Energia pays an annual dividend of $0.25 per share and has a dividend yield of 3.4%. Atlantica Yield pays out -755.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Atlantica Yield and Companhia Paranaense de Energia’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlantica Yield $1.01 billion 1.92 -$111.80 million ($0.18) -107.28
Companhia Paranaense de Energia $4.40 billion 0.45 $323.73 million N/A N/A

Companhia Paranaense de Energia has higher revenue and earnings than Atlantica Yield.

Volatility and Risk

Atlantica Yield has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Atlantica Yield and Companhia Paranaense de Energia, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantica Yield 0 0 5 0 3.00
Companhia Paranaense de Energia 0 1 0 0 2.00

Atlantica Yield currently has a consensus target price of $25.75, suggesting a potential upside of 33.35%. Given Atlantica Yield’s stronger consensus rating and higher possible upside, research analysts clearly believe Atlantica Yield is more favorable than Companhia Paranaense de Energia.

Profitability

This table compares Atlantica Yield and Companhia Paranaense de Energia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantica Yield -5.50% 1.95% 0.36%
Companhia Paranaense de Energia 8.03% 7.32% 3.44%

Institutional & Insider Ownership

49.3% of Atlantica Yield shares are held by institutional investors. Comparatively, 1.1% of Companhia Paranaense de Energia shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Atlantica Yield beats Companhia Paranaense de Energia on 8 of the 14 factors compared between the two stocks.

About Atlantica Yield

Atlantica Yield plc acquires, owns, and manages renewable energy natural gas, power, electric transmission lines, and water assets in North America, South America, Spain, Algeria, and South Africa. As of December 31, 2017, it had 22 assets, including 1,446 megawatts (MW) of renewable energy generation assets comprising solar power and wind plants; 300 MW of natural gas power generation assets that produce electricity and steam from natural gas; 1,099 miles of electric transmission lines; and desalination plants with an aggregate capacity of 10.5 million cubic feet per day. The company was formerly known as Abengoa Yield plc and changed its name to Atlantica Yield plc in May 2016. Atlantica Yield plc was incorporated in 2013 and is based in Brentford, the United Kingdom.

About Companhia Paranaense de Energia

Companhia Paranaense de Energia ? COPEL engages in the generation, transmission, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers primarily in the State of Paraná, Brazil. As of December 31, 2017, the company operated 17 hydroelectric plants, 12 wind plants, and 1 thermoelectric plant with a total installed capacity of 5,024.0 megawatts; and owned and operated 2,698.3 kilometers of transmission lines and 196,951.2 kilometers of distribution lines. It holds concessions to distribute electricity in 394 municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. The company also provides telecommunication services to corporate clients, including supermarkets, universities, banks, Internet service providers, and television networks, as well as to retail clients; and broadband Internet access to public elementary and middle schools. In addition, it supplies piped gas to 39,377 customers, including thermoelectric plants, cogeneration plants, gas stations, other businesses, and residences through a gas distribution network covering 812 kilometers in the State of Paraná. Companhia Paranaense de Energia – COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.

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