Reviewing Enel Chile (NYSE:ENIC) & Companhia Paranaense de Energia – Copel (NYSE:ELPC)

Companhia Paranaense de Energia – Copel (NYSE:ELPC) and Enel Chile (NYSE:ENIC) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Companhia Paranaense de Energia – Copel and Enel Chile, 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
Enel Chile	0	4	1	1	2.50

Companhia Paranaense de Energia – Copel presently has a consensus price target of $10.40, indicating a potential downside of 11.44%. Enel Chile has a consensus price target of $4.65, indicating a potential upside of 10.85%. Given Enel Chile’s higher possible upside, analysts plainly believe Enel Chile is more favorable than Companhia Paranaense de Energia – Copel.

Profitability

This table compares Companhia Paranaense de Energia – Copel and Enel Chile’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
Enel Chile	11.04%	9.50%	4.13%

Dividends

Companhia Paranaense de Energia – Copel pays an annual dividend of $0.58 per share and has a dividend yield of 4.9%. Enel Chile pays an annual dividend of $0.30 per share and has a dividend yield of 7.2%. 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. Enel Chile pays out 76.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enel Chile is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

3.2% of Enel Chile shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Companhia Paranaense de Energia – Copel has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Enel Chile has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Companhia Paranaense de Energia – Copel and Enel Chile”s gross 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	1.87	$424.24 million	$0.57	20.60
Enel Chile	$4.66 billion	1.24	$537.63 million	$0.39	10.76

Enel Chile has lower revenue, but higher earnings than Companhia Paranaense de Energia – Copel. Enel Chile 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.

Summary

Enel Chile beats Companhia Paranaense de Energia – Copel on 9 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 Enel Chile

Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation, and Distribution and Networks Segments. It generates electricity through various sources, such as hydroelectric, thermal, wind, solar, and geothermal power plants. It distributes electricity in various municipalities of the Santiago metropolitan region. The company also engages in the sale and transportation of natural gas, and provision of engineering consulting services. It serves residential, commercial, industrial, and other customers. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in October 2016. The company was incorporated in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. (SNSE:ENELCHILE) operates as a subsidiary of Enel SpA (BIT:ENEL).