Comparing Companhia Paranaense de Energia – COPEL (OTCMKTS:ELPVY) and TXNM Energy (NYSE:TXNM)

Companhia Paranaense de Energia – COPEL (OTCMKTS:ELPVY) and TXNM Energy (NYSE:TXNM) are both mid-cap utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Dividends

Companhia Paranaense de Energia – COPEL pays an annual dividend of $0.01 per share and has a dividend yield of 0.8%. TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.5%. TXNM Energy pays out 170.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Companhia Paranaense de Energia – COPEL and TXNM Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Companhia Paranaense de Energia – COPEL	18.43%	16.92%	7.73%
TXNM Energy	4.50%	10.15%	2.36%

Institutional & Insider Ownership

91.7% of TXNM Energy shares are held by institutional investors. 1.4% of TXNM Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Companhia Paranaense de Energia – COPEL and TXNM Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Companhia Paranaense de Energia – COPEL	$3.95 billion	0.90	$504.25 million	N/A	N/A
TXNM Energy	$1.84 billion	2.16	$88.35 million	$0.91	48.53

Companhia Paranaense de Energia – COPEL has higher revenue and earnings than TXNM Energy.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Companhia Paranaense de Energia – COPEL and TXNM Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia Paranaense de Energia – COPEL	0	0	0	0	N/A
TXNM Energy	0	1	3	0	2.75

TXNM Energy has a consensus target price of $47.75, indicating a potential upside of 8.13%. Given TXNM Energy’s higher possible upside, analysts clearly believe TXNM Energy is more favorable than Companhia Paranaense de Energia – COPEL.

Risk and Volatility

Companhia Paranaense de Energia – COPEL has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

About Companhia Paranaense de Energia – COPEL

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, 2019, the company operated 19 hydroelectric plants, 25 wind plants, and one thermoelectric plant with a total installed capacity of 5,742.0 megawatts; and owned and operated 3,389 kilometers of transmission lines and 199,952.6 kilometers of distribution lines. It holds concessions to distribute electricity in 399 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 47,238 customers, including thermoelectric plants, cogeneration plants, gas stations, other businesses, and residences through a gas distribution network covering 833 kilometers in the State of Paraná. Companhia Paranaense de Energia Â- COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.

About TXNM Energy

TXNM Energy, Inc., through its subsidiaries, provides electricity and electric services in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment engages in the generation, transmission, and distribution of electricity. The segment owns and leases communications, office and other equipment, office space, vehicles, and real estate. It generates electricity using coal, natural gas and oil, and nuclear fuel and waste, as well as solar, wind, geothermal, and battery storage energy sources. The TNMP segment provides regulated transmission and distribution services. The segment also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves residential, commercial, and industrial customers and end-users of electricity in New Mexico and Texas. The company was formerly known as PNM Resources, Inc and changed its name to TXNM Energy, Inc. in August 2024. TXNM Energy, Inc. was founded in 1882 and is based in Albuquerque, New Mexico.